Chronicle Editor
Fairness Moyana in Hwange
HWANGE Colliery Company Limited (HCCL) will soon start exporting coking coal to Sri Lanka, India and China as it continues to expand its footprint beyond the Sadc region.
HCCL contracted a Chinese company to rebuild its coke oven battery, which was decommissioned in 2014 due to high operational costs.
Coke is a processed form of coal used in several industrial processes, especially in iron ore smelting. To make coke, coal is heated to temperatures around 1250-1300°C and baked in a coke oven for 15-30 hours. Several coke ovens grouped are called a coke battery.
During the coking process, impurities are released from the coal, which creates a refined product. Many of the impurities released are toxic chemicals. Some facilities have separate processing procedures that collect these chemical impurities and transform them into useful by-products.
The rehabilitation of the coke oven battery is part of the company’s efforts to improve the production of high-value and margin coking coal.
The company also intends to ride on the US$1.5 billion Dinson steel plant in Manhize, Chirumanzu District, which will have a huge appetite for coking coal as it expands its operations.
HCCL’s acting managing director, Mr William Gambiza, said the resuscitation of the coke oven battery will boost cash flow and return the coal mining giant to profitability.
“The resuscitation of the Hwange Colliery Company coke oven battery is a project that is underway and we have managed to look for some reputable contractors to come on board. As we speak, demolitions are underway and we expect to bring the coke oven battery around October-November this year,” he said.
He said the cost of rehabilitation is pegged at around US$8, 2 million.
“As planners, we always plan with a contingency to say that in the event there are any changes in the policy like now whereby the Government has scrapped the deferral of VAT issues, we are now forced to pay and that may increase the project cost,” said Mr Gambiza.
“If you look at the current composition of our product , it’s mainly composed of low-value products though we are operating profitably. The introduction of the coke oven battery will bring high value and boost our cash flows.”
Mr Gambiza said HCCL managed to secure international markets including regional ones such as Malawi, Zambia, Mozambique, DRC, Namibia and South Africa, among others.
“We supply regionally and internationally and we are in the process of trying to develop some markets as we have India and China expressing interest in our coking coal,” he said.
The US$3,2 million construction of a coal washing plant and opening of 3 Main North underground mine is set to complement the company’s efforts to tap into the markets with the lucrative coke product.
Mr Gambiza said HCCL is employing several strategies and interventions aimed at restoring its competitiveness.
“Yes, the company is still under reconstruction, but it is out of the woods as we have managed to put in place strategies and systems that are meant to restore the competitiveness of the company. The company had developed an investment policy that is market-driven and able to adapt to the obtaining market dynamics thereby cushioning the entity from potential loss,” he said.
“Our production profiles are market driven, we have managed to introduce a dynamic investment policy, which allows us to respond to the market dynamics. Where we feel that the market signals a high growth environment, we are well prepared, we can expand our production levels.”
HCCL is hoping to leverage its Chaba 1 pit, which is churning out 2 million tonnes of coal, which is going to feed the coke oven battery, thermal power station and industry. The pit produces three types of coal, which are power coal, industrial coal and coking coal.
Online Reporter