adminFairness Moyana Hwange Correspondent
INDIGENOUS-owned coal mining company Chilota Colliery has started recording improved production volumes and now supplying 5,000 tonnes of coal to the Zimbabwe Power Company (ZPC).
The Hwange based company’s general manager Herbert Makwala said while the mine was still developing, efforts were under way to expand production capacity by exploiting shallow coal deposits to boost output.
“We’re doing extensive exploration in search of shallow core areas so that we increase our volumes as you’re aware we’re a new mine and still finding our feet. However, since we have begun to provide ZPC with coal we’ve to expand our scope as we’ve penetrated the market and are selling the commodity to the general industry,” said Makwala.
He said the mine was producing about 45,000 tonnes of coal per month and was expecting to tap into the export market once production volumes were up.
“Once we increase our output, which we’re supplying to the general industry there’ll be need to seek other markets where we’re exploring exporting to the north and south,” said Makwala.
He admitted stiff competition from established coal miners such as Hwange Colliery Company, Makomo Resources and Coalbrick Mine.
“Besides competition from other established mining companies in the district our greatest challenge is the time the clients take to pay for coal, which ends up affecting operations as we need working capital,” he said.
Locals own 83 percent of shares at Chilota with the remainder being owned by foreign investors. Chilota commenced operations last year and has 170 workers mainly local villagers from Mwemba and Simangani areas.
The mine has started engaging communities in its area of operation as part of efforts to fulfilling its corporate social responsibility with plans to set up a satellite school and clinic in Mashala on the cards.
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