Hwange Colliery Company Limited (HCCL) is targeting to further improve its production levels by at least 30 percent from the current productive figure of 300 000 tonnes as the company embarks on extensive turnaround strategies.
The coal miner recently embarked on a lucrative turn around deal with the Zimbabwe Power Company (ZPC) and an independent power producer Lusulu Power which will see the firm supplying 400 000 tonnes of coal per month to the two companies over a 25 year period.
Buoyed by this deal, as well as the resuscitation of its underground mining activities at mine 3 following the securing of a $3.2 million line of credit, the mining company is optimistic of improving productive output by a further 100 000 tonnes within the next few months.
The company expects to exploit the underground mining activities for high value cooking coal and expects to start trading profitably from July.
In a statement released last month the coal mining firm recorded a 23 percent year-on-year decline in revenue for the six months to end June from $24.5 million to $18.8 million.
The company stated that it had strategically adopted cost-containment measures with a resultant effect of reducing both operating and administrative costs.
This is one of the major objectives for the board to reverse these loss positions and ensure enhanced profitability.