admin178 724 recorded in the same period last year.
This negatively affected the company’s revenue turnover for the period under review at US$48,6 million, 8 percent above the US$45,2 million recorded in the previous comparable period. Hwange incurred a loss after tax of US$1,5 million, which was a significant decline from the US$4,5 million profit recorded for the same period last year.
The loss was attributed to an increase in overhead costs against stagnant production volumes and unfavourable prices of products.
During the period under review, however, a property revaluation surplus of US$39,9 million was realised, which resulted in a total comprehensive income for the half year of US$38,4 million compared to US$4,5 million in the parallel period in 2010.
The company reports that Hwange Power Station coal deliveries to Zimbabwe Power Company for the period were 688 263 tonnes compared to 769 340 tonnes in the prior comparable period, representing a marginal 10 percent decrease.
The decline in deliveries to the ZPC was attributable to the fact that Hwange took a strategic focus on supporting urban thermal power stations as the Hwange Power Station held adequate strategic stocks on the ground.
The move to focus on urban thermal stations yielded positive results for Hwange Coking Coal and Hwange Industrial Coal, whose coal sales increased by 14 percent from 319 159 tonnes in the first half of last year to 364 688 tonnes.
The company recorded a 5 percent increase in coke sales from 18 198 tonnes for the first half of 2010 to 18 943 tonnes in the period under review.
Hwange projects an upturn in overall coal sales as the firm is set to enter new continental and overseas markets (particularly the Indian market) for both coal and coke, but simultaneously maintaining a strategic domestic focus for power generation, the tobacco industry and manufacturing.
A consumption boost is being offered by the resumption of operations at the re-branded New Zimbabwe Steel, and Hwange has also given indications at acquiring and developing new coal concessions from the second half of the year to improve on production.
Bongani Ndlovu
Online Reporter