Chronicle Editor
Oliver Kazunga, Senior Business Reporter
HWANGE Colliery Company Limited (HCCL) targets to consistently produce at least 200 000 tonnes per month as operations are expected to stabilise on the back of various turnaround initiatives being implemented.
The colliery, which is under administration was placed under reconstruction in October 2018 by the Government when it almost collapsed as creditors were swooping on it through a string of litigations.
Workers had also gone several months without salaries.
In a statement accompanying financial results for the half-year ended June 30, 2021, HCCL said its production during the period under review increased by 51 percent although foreign currency to import critical spares and consumables remained the major challenge.
“A lot of work has gone into stabilisation of the business. With the company being put under reconstruction, it has been challenging to obtain working capital and long-term financing for the business.
“It is, however, pleasing to note that as the company’s performance continues to improve, funding support in the form of lines of credit to the business from local banks and regional financiers has likewise been established.
“As a result, the operations are expected to stabilise within the next six to 12 months. The immediate target is to consistently produce at least 200 000 tonnes a month.”
During the period under review, the company’s revenue increased by 38 percent from $2,19 billion last year to $3,03 billion in 2021 on an inflation-adjusted basis.
This was largely due to a combination of an increase in high-value coking coal sales and regular production price adjustments in line with market value. – @okazunga
Online Reporter