adminmaking industry.
An official said the company had already delivered coke for a trial run. If the exercise is successful, Hwange will supply the Indian market with an average of 40 000 tonnes per month.
“We have started shipments to India on a trial basis and if they are satisfied (the Indian companies) with our product, we will then start implementing our contracts,” said the official.
The coke will be shipped to Tutiricon port in India via Maputo in Mozambique.
The deal had become almost uncertain as a result of logistical challenges.
Hwange has been battling to obtain port space in Maputo and Beira, which is largely controlled by South African companies and Vale, a Brazilian company operating a number of coal mines in Mozambique.
“But are working on that issue . . . we are negotiating (for port space) with companies involved,” said the official.
Currently, Zambia is the main export market for Hwange where it is supplying coking coal for copper smelting.
Apart from India, Hwange is also targeting further coal and coking coal sales to the Democratic Republic of Congo, Tanzania, Botswana and Mozambique.
On the domestic market, the company’s main customer is the Hwange Power Station, which consumes on average 180 000 tonnes of coal a month.
The former Zimbabwe Iron and Steel Company now rebranded NewZim Steel, after its take-over by an Indian conglomerate, Essar. As Ziscosteel it was the second largest customer for Hwange Colliery before it closed.
Efforts are underway to revive the company under new ownership and this will boost coking coal and coal sales for Hwange.
NewZim requires coking coal for its own coke ovens at its Redcliff smelter.
Demand for coking coal is also likely to be boosted by the envisaged growth in the ferrochrome industry.
Zimasco, the country’s biggest ferrochrome producer, said it had begun phase one of its US$300 million expansion programme, expected to be completed by November next year.
The expansion will see Zimasco’s annual output rising from the current 170 000 tonnes per year to an average of 330 000 tonnes annually.
Government has also banned exports of raw chrome, which would expand the country’s smelting capacity. But coal demand from the manufacturing sector will remain subdued due to strained capacity utilisation by many companies which use coal-fired boilers.
Most companies are operating at below 50 percent of their production potential.
Hwange is selling about 30 000 tonnes to industry, compared with its usual 75 000 tonnes per month.
Online Reporter