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Dumisani Nsingo in Hwange
HWANGE Colliery Company Limited (HCCL) is considering handing over infrastructure it constructed that include a hospital to Government, in a development that will also see employees being given company houses to offset outstanding salaries.
Briefing members of the Mines and Energy Parliamentary Portfolio Committee on Thursday before a tour of mining operations, HCCL managing director Engineer Thomas Makore said the company was prepared to handover its roads, health facilities and other social amenities to the Ministry of Local Government, Public Works and National Housing.
He said maintenance of its non-core activities has over the years weighed on the company’s operations.
“We also require assistance in terms of the takeover of town infrastructure. Most mining companies today are fully focused on the core business of mining.
We are one of the few companies that are still providing housing and maintaining town infrastructure that include a hospital and various other amenities.
“So what we are saying is that the Ministry of Local Government should take over the town infrastructure,” he said.
Eng Makore, however said the company would continue to operate its water reticulation system as it was critical in its mining operations.
“Water is critical for the company’s operations so we still want to have control over water supplies for our operations otherwise if we give that responsibility to another party, if there is no water then our operations will stop, so we want to maintain water supply for our operations,” he said.
Eng Makore took a swipe at new coal mining companies for their failure to assist in maintaining infrastructure within its concession despite the fact that the firms make use of the facilities.
“We used to be a monopoly when we started and since about seven years ago there is competition. So they are other players in the mining industry, which we know about and should contribute to the maintenance of the infrastructure such as the roads and electricity and they should do that until the Ministry of Local Government has taken over so that we don’t bear the cost of maintaining the infrastructure alone,” he said.
Eng Makore said the company was also considering handing over part of its houses to some of its 2 048 employees in an effort to offset their outstanding salaries.
The company has a legacy debt amounting to $352 million and owes its employees about $70 million in outstanding salaries.
“As a way to reduce our debt position to employees, we are planning to give houses to our current and former employees,” said Eng Makore. — @DNsingo
Online Reporter