adminworkers in and outside the mine.
“The machinery, which was sourced from a leading South African mining equipment supplier, comes at a time when underground workers were walking an average of three kilometres to the working area.
“The procurement of the multi-purpose vehicles will certainly go a long way in increasing productivity through efficiency, safety and also as a morale booster for the underground miners,” said Hwange.
Hwange operates three mines – the 3-Main underground, JKL and Chaba. In the medium term, that company plans to acquire non-flammable light vehicles and flame-proof tractors which is in line with best international practices and latest technology in underground coal mining, the company said in a statement.
The Zimbabwe Stock Exchange-listed miner is currently pursuing an ambitious recapitalisation programme that will transform the fortunes of the company.
A full recapitalisation, which involves an overhaul of old equipment and systems, would cost US$175 million, according to the management.
On new machinery, the company needs about US$90 million for both underground and open-cast operations.
Negotiations for a loan are underway with regional financier Development Bank of Southern Africa.
Despite the liquidity constraints and high cost of borrowings, Hwange management is optimistic about the transformation of the firm. Several avenues are being pursued and recently, its chairman Mr Farai Mutamangira and managing director Mr Fred Moyo toured Essar Global facilities in India to familiarise with their operations with view of exploring business opportunities.
The tour was at the invitation of Essar Steel, whose parent company Essar Global, acquired a significant stake in New Zimsteel, formerly Ziscosteel.
The tour was meant to determine the possibility of supplying Essar Global with coking coal, coke and thermal coal produced by Hwange.
The two also explored the possibility of exporting coal waste and gas, a by-product of coke, which Essar requires for power generation.
Essar is global conglomerate with interests mining, steel manufacturing, oil and gas, power generation, shipping ports and logistics. Prior to that visit, the two officials had toured some leading South African coal mines to familiarise with their modern mining methods.
On exports, the company is looking at broadening its external markets and has already started supplying coal to India.
In the region, it mainly supplies coal and coke to Zambia, the Democratic Republic and Congo, Mozambique, South Africa, Tanzania and Botswana.
However, demand on the local market is likely to remain depressed as industries continue operating below capacity.
Most tobacco farmers who traditionally used coal for curing are now relying on wood as alternative energy to cure their tobacco.
It is, however, anticipated that the revival of Zisco will boost Hwange’s domestic sales.
Online Reporter