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Fairness Moyana, Sunday News Correspondent
Hwange Colliery Company says it has set its sights on increasing its monthly coal output to 400 000 tonnes as it inches closer to resuscitating its underground mine operations.
In an interview, the company’s managing director, Engineer Thomas Makore said the increase in its production from the current
250 00 tonnes was riding on the reopening of 3 Main Underground Mine early next year.
“Hwange Colliery is on course to increase the monthly output to around 400 000t a month as the 3 Main Underground Mine is expected to come on board early next year,” said Eng Makore.
He, however, said in order to realise profitability and boost output the acquisition of modern equipment was crucial in building capacity to produce adequate coal for domestic and regional markets.
“The acquisition of modern machinery is critical for Hwange Colliery Company in order to build capacity to produce adequate coal volumes for the domestic and regional markets. The new capacity must be more efficient and enable the company to produce at the least cost. The goal is to produce high volumes, well above break-even point using modern and efficient technologies and thus drive the company to profitability and growth.
“The turnaround programme involves the mobilisation and harnessing of our human and financial capital, implementation of business process improvement and culture change interventions. “
The company which is on the rebound following the approval of the scheme of arrangement by creditors which gave it the much needed breathing space is currently exporting around 3 000t per month to DRC, Botswana and Mozambique. Eng Makore said efforts are also underway to increase export sales while improving quality and delivery of the product to customers.
“The resumption of operations at the 3 Main Underground Mine will be a major boost to the export drive given the high quality of Hwange Colliery’s coking coal. The company is expected to commence underground mining operations in the opening months of 2018. This will enhance the product mix offering of Hwange Colliery thereby improving the overall profitability and quality of the revenue,” he said.
The company has been relying on contractor, Mota Engil who have been contributing the bulk volumes after experiencing a series of breakdowns which grounded part of its equipment. Meanwhile the company is set to begin exploration of its Lubimbi Coalfields after finalising an agreement with a prospective company to carry out the exploration and mapping exercise.
derick.khumalo