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Africa Moyo Deputy News Editor
Government is working on an upward review of the price paid to coal miners to ensure viability, Director in the Ministry of Energy and Power Development Engineer Benson Munyaradzi has said.
He said this last week during Makomo Resources’ ninth anniversary celebrations in Hwange.
Makomo, which has become the country’s biggest coal miner by output, believes a review of the coal price from the current US$26,50 which is paid at the prevailing foreign currency interbank rate, was long overdue.
“Without coal there will not be any electricity. We are now facing a critical shortage of electricity and if we don’t have coal, we just go into darkness, so we need to support our electricity suppliers,” said Eng Munyaradzi.
He added that Government “fully recognises the need and the urgency for this coal price review”.
“We want to assure you that Government is working on this matter in the overall aspects of the economy because electricity cost is a major factor in the growth of the economy,” he said.
Eng Munyaradzi believes the recent electricity tariff adjustment granted by the Zimbabwe Energy Regulatory Authority (Zera) of 162,16c from 38,61c should “certainly put ZPC (Zimbabwe Power Company) and ZETDC (Zimbabwe Electricity Transmission and Distribution Company) in a better position to pass on some of that tariff to key producers such as Makomo Resources to take care of your staff, imports, financiers, community and partners”.
He was quick to say the new tariff “might not be the correct tariff” but Government believes it will be able to support coal miners.
Makomo director Mr Raymond Mutokonyi, who represents the Active Coal Producers’ Association, told The Herald yesterday that the minimum price they expect is US$35.
“The US$26,50 we are getting has been in existence since 2011. This price came about when the diesel price was USc95 and a lot has changed since then,” said Mr Mutokonyi.
The process to review the price of coal has been ongoing for over a year now.
Makomo, which started operations in 2010, has capacity to mine 300 000 tonnes of coal per month.
However, output has been low due to shortages of raw materials such as diesel and explosives, and delayed payments from customers.
Last month, Makomo hauled 185 000 tonnes.
Online Reporter