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The company posted a profit of $500 000 in the first six months of the year although coal production fell 22 percent from the same period last year.
The country’s largest coal miner, which is facing competition from new comers after years of operating as a near monopoly, said it sold 918 491 tonnes of coal compared to 1,18 million tonnes in the first six months of 2011.
One of the new miners, Makomo Resources is supplying coal to HCCL’s traditional customers such as the Hwange Power Station.
The company saw a plunge of its sales to the Hwange Power station, with deliveries dropping by almost 50 percent.
In a statement accompanying the company’s unaudited results for the six months to 30 June, chairman Mr Farai Mutamangira said Hwange Power Station had built stockpiles of up to five months, resulting in reduced coal off take.
Instead of supplying the contractual 180 000 tonnes of coal a month, HCCL was delivering just 40 000 tonnes to the power station.
Coking coal sales also decreased from 688 263 tonnes to 373 126 tonnes.
However, sales of coal fines improved due to high demand from countries in the region.
Coke sales increased by 261 percent to 68 336 tonnes also largely due to demand from regional countries. HCCL exports coal to Zambia and the Democratic Republic of Congo.
“An international marketing strategy to penetrate new continental and overseas markets for coal and coke is being pursued.
“On the domestic market, the thrust will be to intensify customer service and consolidate market leadership focusing on power generation, the tobacco industry and the manufacturing industry,” he said.
Mr Mutamangira said HCCL was pursuing various recapitalisation initiatives which would result in increased production.
“Commissioning of equipment worth $6,35 million procured under a pre-purchase financing structure with a major customer is underway.
“The awarding of tenders for the supply of mining equipment worth $40 million is also currently in progress and is expected to be completed in the fourth quarter,” he said.
Mr Mutamangira said a retrenchment exercise, started in May, would see 200 employees losing their jobs to cut overhead costs under the Enterprise Resource Planning system.
Online Reporter