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Prosper Ndlovu, Business Editor
DESPITE the numerous challenges threatening the viability of Hwange Colliery Company, Acting President Phelekezela Mphoko yesterday said the government would not allow the giant firm to collapse as he insisted that measures to turn around the troubled entity would work.
Saddled with close to $300 million debt to different creditors who include workers and suppliers, HCCL is struggling to meet daily operational targets and demand for coal from its traditional domestic and international markets.
Coming out of a closed door briefing with HCCL executives and top government officials in Hwange yesterday, Acting President Mphoko dismissed fears that the company risks collapse.
“I commissioned new mining equipment here from India and Belarus last year and I’ve come here to find out how the company is making use of the equipment and check if there’s progress,” said Mphoko.
Asked if he was happy with the state of affairs in the company that has been on a loss making path as indicated in its annual financial statements, the acting President said: “What’s important is that the new equipment has been secured for the company,” adding that measures were being put in place to ensure the new machinery yields positive results.
He, however, admitted that the $32 million worth of equipment had mechanical defects.
“The mistake regarding that equipment is on the part of the supplier who has admitted the blame. It’s not our people who are at fault here. The supplier has agreed to address the defects and provide spare parts at his own expense,” said Mphoko. “So there’s hope that Hwange Colliery will rise again and all that we’re hearing that the company will close isn’t true.”
Online Reporter