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Mernat Mafirakurewa/Patrick Chitumba—
HWANGE Colliery Company Limited is making frantic efforts to increase coking coal output as it seeks to expand exports of the product to South Africa and other countries, it has been learnt. South Africa has a huge appetite for coking coal as it is expanding its energy sector especially in the Limpopo province.
After privatising its coal mines, South Africa has found itself in dire need of thermal coal as it is facing an increase in power usage due to its growing population and industry.
HCCL board chairman Farai Mutamangira recently said South Africa had identified Zimbabwe as a major provider of thermal coal.
“South Africa is a net importer of coking coal and is looking at importing coking coal from Zimbabwe as we are a major producer of the product,” he said.
Mutangamira said there was a need to work on improving the existing infrastructure so that the country is able to meet the anticipated demand.
“Funds permitting, we would like to rehabilitate our existing infrastructure so that we meet the anticipated demand. There is also a need for NRZ to work on its wagons and railway line linking us to South Africa for swift movement of coal,” he said.
South Africa is in the process of building Medupi Power Station, a new dry-cooled coal-fired power station being built by Eskom near Lephalale in Limpopo province.
The project comprises six 800 megawatt (MW) units to provide a total installed capacity of 4,800 MW.
In the year to December 31, 2013, HCCL’s export sales of coke and coke breeze decreased by 57 percent as a result of shutdown of some of the operations of coke customers in the Democratic Republic of Congo and the invasion of cheaper coke imports from China.
The low off take of coke – local and export – resulted in coke sales including breeze amounting to 85,910 tonnes compared to 228,201 tonnes sold in 2012.
As part of efforts to turnaround the fortunes of HCCL, the board recently announced plans to unbundle it into six Strategic Business Units (SBU’s) – Hwange Colliery Holdings, Hwange Coal Mining, Hwange Plant and Equipment, Hwange Coal Processing and Cokeworks, Hwange Hospital and Hwange Properties & Estates.
HCCL also plans to resize senior management positions and appoint a chief operating officer.
Online Reporter