hwange1.jpgHwange  Colliery Company Limited  and the Development Bank of Southern Africa (DBSA) have finalised a US$100 million recapitalisation deal expected to be released next year.

The finalisation of the US$100 million transaction comes at a time the country’s sole  coal producing firm  Hwange  Colliery Company Limited, is experiencing  challenges  in accessing long-term funds to recapitalise  operations.

The company’s Chief Executive Officer, Mr.  Fred Moyo said in an interview in the capital, the DBSA and the colliery have concluded the US$100 million transaction in a move expected to increase coal production.

“We have completed the transaction and we hope this will restore normal production,” said Mr Moyo.

Mr. Moyo said Government as the majority shareholder for the colliery is also assisting in mobilising capital to ensure that Hwange plays an important role in increasing thermal production for electricity supplies within the country.
“The government is also playing its role in ensuring that thermal production is restored to normal capacity,” added Mr Moyo.
Apart from the DBSA facility, the colliery is in talks with multilateral financiers on  the long-term financial rescue facilities at concessionary rates to purchase new machinery.