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Fairness Moyana Hwange Correspondent
MAJOR coal mining companies in Hwange have scaled down production on the back of the fall in international market prices of the mineral and lack of working capital. With winter beckoning the move is likely to induce a strain on domestic power generation given the associated increase in electricity consumption in that season.
This emerged during a tour of coal suppliers by Zimbabwe Power Company (ZPC) board members last week. The team was on a mission to assess the coal miners’ preparedness for the winter programme and stage three Hwange Power Station (HPS) upgrade.
The companies bemoaned the fall in market prices and unavailability of working capital, which they said had forced them to scale down production. Hwange Colliery Company Limited (HCCL), which supplies 100,000 tonnes per month to ZPC and 125,000t to the small thermal stations, is only producing 250,000t of coal per month.
Makomo Resources, which assumed the rank of the largest coal producer last year producing 350,000t per month, has reduced its production to between 250,000t and 300,000t.
On average the company supplies 120,000t to ZPC and 20,000t per month to other thermal power stations. Coalbrick Mine supplies 80,000t to ZPC while 20,000t goes to the other stations. Chilota, which is still doing exploration work, is supplying 60,000t.
HCCL managing director, Thomas Makore said they were ready to meet the energy sector’s demands though they were faced with production challenges arguing that they were working on a cocktail of measures chief among them raising working capital to improve their production.
“We’ve maintained our supply figure and we can supply more although we’ve been unable to increase our supply because of the technical challenges we’re facing with our own equipment. We’re, however, seized with addressing that and we’re confident that once sorted we should be able to ramp up. But what we need is working capital as mining is a high cost business so we need to ensure that we buy all the production inputs so that we’re able to perform,” he said.
Makomo Resources general manager, Samson Mabvira said while they were able to produce more depending on demand the unavailability of working capital was affecting production of coal.
Speaking after the tour ZPC board chairman, Stanley Kazhanje said they were happy with the companies’ readiness to supply although they were facing financial challenges.
“We wanted to appreciate the company’s turnaround efforts and the challenges they’re facing especially in light of the fact that we’re going into a winter season, which has a power demand peak. So we wanted to assess how prepared the company is as we go into that season. Generally we’re happy, however, there are challenges like most companies but I’m sure we’ll come around,” he said. “From a technical point of view I’m happy to say our suppliers are engaging our technical teams and coordinating their efforts in terms of mining, delivery, quality and safety issues.”
ZPC is currently producing a total of 973MW from its Kariba, Munyati, Harare and Hwange power stations while 400MW are imports. During, the winter season demand for electricity rises to about 1,800MW against an average output of 1,300MW.
As part of measures of ensuring that energy is conserved the power utility usually crafts a schedule in which consumers countrywide will be put under load shedding at morning and evening peak.
Online Reporter