adminfirm saying efforts were underway to secure funding to bolster operations.
Hwange, which is listed on the Zimbabwe, London and Johannesburg stock exchanges is need of at least US$100 million to acquire new equipment and machinery for both underground and open cast operations.
“I am optimistic about the turnaround of Hwange Colliery,” said Mr Mutamangira in an interview recently adding that “efforts to secure long-term funding from regional financiers are already underway”.
Mr Mutamangira, a prominent lawyer who successfully represented Government in its case against African Consolidated Resources over the diamonds in Chiadzwa Marange, has already ruled out a rights offer or private placement.
Hwange is the most heavily capitalised mining firm of the ZSE. A full recapitalisation of US$100 million is needed but it is apparent the Government, the biggest shareholder with 37 percent does not have money to inject into the business neither does it want to be diluted.
Mr Nick van Hoogstraten, the second largest shareholder with about 26 percent, is unlikely to do it alone.
This means Hwange will have to look for other capital raising initiatives.
“We are currently operating at around 60 percent of the installed capacity but we should be able to increase output once we secure funding,” he said.
Last year, Hwange indicated that its long-term recapitalisation was dependent on an audit of its local resources and reserves as investors normally want to know the quantity of mineral resources before they can commit funds.
In that regard, Hwange has already applied for more concessions to Government.
Hwange, which operates three mines – JKL, Chaba and 3-Main Underground – is currently producing about 350 000 tonnes per month.
The company is considered to have world class coal deposit.
Online Reporter