Hwange Colliery expected to restore normal production

Hwange Colliery Company Limited is on the verge of concluding a US$110 million deal with three regional financiers in a move expected to restore normal production.

 

The arrangement is expected to result in the country’s sole coal producer increasing  output as well as  purchasing new machinery.

 

The company’s managing director Mr. Fred Moyo said negotiations with the IDC of South Africa, PTA Bank, and the Development Bank of  Southern Africa (DBSA) are at an advanced stage.

 

“We hope to conclude the entire arrangements before the end of this year in a move that will increase production,”said Mr. Fred Moyo.

 

HCCL chairman, Mr. Tendai  Savanhu said Government which is the main shareholder in the  company accounting for a 51% stake, has  played an important role in mobilising funds.

 
“We are still committed to work with our main shareholder that is the Government so that we can  progress and achieve our goals,”said Mr.Tendai Savanhu.

 

In a related development HCCL shareholders have agreed that the  turnaround strategy of the company will depend on adequate funding, streamlining of non-core business units, extensive export market plan as well as joint venture  deals.

 

According to the company’s balance sheet, total coal  and coke sales for the year ending December 2009 amounted to 1,7 million tonnes and were marginally lower than the 1,8 million tonnes achieved in 2008.