adminFairness Moyana Hwange Correspondent
INDIGENOUS-owned coal mining company Chilota Colliery has temporarily suspended operations in order to engage another contractor so that it has two contractors working on the mine. Management at the Hwange based firm confirmed they were seeking another contractor in a bid to increase output to more than 30,000 tonnes per month from 5,000 tonnes.
They admitted the mine was hit by capacity challenges due to limited equipment.
The company’s general manager Herbert Makwala said operations at the mine had been temporarily halted to allow them to seek a second contractor to increase capacity.
“The contractor who was working with us has limited capacity hence the decision to engage another contractor to assist so that we can increase production to 30,000t per month,” he said.
Makwala said the company was courting a potential investor who had expressed interest in their underground project that will see production increasing six fold.
“We’re in the early stages of discussion with a potential investor who is interested in our underground operations.
“It will be too early to give details at this stage,” he said
Makwala said long term plans included completion of an expansion programme, which will result in increased volumes while exploring other markets outside the country.
“Once we increase output, there’ll be a need to seek other markets outside the country,” he said.
Makwala admitted stiff competition from other established mining entities such as Hwange Colliery Company, Makomo Resources and Coalbrick Mine.
“Besides competition from other established mining companies, our greatest challenge is the time the customer takes to pay for the coal, which ends up adversely affecting operations due to lack of working capital,” he said.
Local shareholders own 83 percent of shares in the firm with the remainder owned by foreigners.
Chilota Mine commenced operations last year and has a workforce of 170 workers mostly locals from nearby villages such as Mwemba and Simangani.
Online Reporter