Hwange Colliery eyes India

firm, Tata Steel following an arrangement that was agreed on between the two firms last month.
In a statement, the mining company said it expects to export 20 000 tonnes of coal.
“About 20 000 tonnes of coking coal is expected to be dispatched from the processing plant to India in June as part of the colliery company’s export drive.
“This will be the first ever coal to be moved by a Zimbabwean company to the Asian country targeting its vast steel making industry,” read the statement.
The company said an average of 20 000 tonnes will be moved on a monthly basis during the first four months and will be increased to 50 000 tonnes per month thereafter.
The first 20 000 tonne consignment is valued at US$3,6 million and is expected to be shipped to India this week and the other 50 000 tonne consignment to be exported in the next four months will be valued at US$9 million.
Hwange is currently operating at 70 percent capacity and is in the process of acquiring more machinery and equipment to ramp up production.
The statement also revealed that the coal would be moved by rail through the Mozambican port of Maputo for onward transportation by sea to India.
“India is seriously short of coal for its huge steel production and energy generating plants.
“South Africa is already exporting large amounts of coal to India.
India is now targeting Zimbabwe and Mozambique coal products,” read the statement.
Hwange Colliery also exports some coal and coke products to countries such as the Democratic Republic of Congo, Zambia, Tanzania, Botswana and Mozambique.
The company added that to ensure consistency in coal exports, there is need to invest in stockpiling areas especially in Mozambique to ensure enough distribution to external markets.
According to the company, plans are underway to establish new offshore markets in Asian countries with the major targets being India and China.
Meanwhile, Hwange Colliery will be participating at this year’s edition of the Zambia International Trade Fair to be held in Ndola from June 29 to July 3 and seeks to consolidate its presence on the Zambian market and to further explore new opportunities.
Zambia is Hwange’s biggest export market, accounting for the bulk of the company’s revenue particularly from coke products.