Hwange Colliery Company Limited (HCCL) and the Ministry of Local Government, Rural Development and National Housing are in discussion towards the handover of infrastructure which was being maintained by the coal company to the local authority as agreed under the turnaround strategy.
The high costs of maintaining the huge infrastructure base was identified as one of the contributing factors to HCCL’s negative operational performance, hence the government resolution to ensure that the company concentrates more on its core business.
HCCL Managing Director, Engineer Thomas Makore said part of the infrastructure set to the handed over to the Hwange Local Board include water supply facilities, road network and water treatment plants.
As part of the transfer process, valuation of the infrastructure is set to be done to ensure that the facilities are transferred for value.
The company is optimistic that the handover of the infrastructure will enable it to reduce costs and concentrate of ramping up production in line with the turnaround strategy.
Taking advantage of the scheme of arrangement, the company has managed to up production from as low as 30 000 tonnes per month in 2016 to the current 300 000 tonnes.