Coal mining firms in Hwange say the Zimbabwe Power Company-ZPC debt which is now in excess of 60 million ZWL Dollars has affected their operations resulting in depressed coal output.
The three major coal producers Makomo Resources, Hwange Colliery Company, and Zambezi Gas say they are struggling to recover the ZWL $63 million debt owed by Zimbabwe Power Company-ZPC which has been accumulated over the past few months.
“As we speak we are owed a combined 63 million for the coal delivered to the electricity producers. While we are happy that there are new players in the coal sectors we strongly feel that we should make all efforts to ensure that operations are sustained,” says Coal Producers Association Chairperson Mr. Ray Mutokonyi
The depressed coal output owing to operation challenges has also seen Hwange Power Stations (HPS)’s stock level going down to the current 115000 tonnes against the minimum requirement of around 200 000 tonnes.
According to the Coal Producers Association, forex challenges continue to affect the industry with a proposal for the treasury to consider increasing the foreign currency retention level in the forthcoming 2020 National Budget.