New MD for Hwange: Employees owed $19 million

Mernat Mafirakurewa/Patrick Chitumba Chronicle Reporters
Hwange Colliery Company Limited (HCCL) has appointed Thomas Makore as new managing director with effect from June 1.
He takes over from Jemester Chininga who has been holding the position in an acting capacity since August last year.Makore, a professional engineer with marketing experience, joins HCCL at a time the company has announced plans to retrench half of its 3,000-plus workforce as part of efforts to contain costs and turn around its fortunes.

Mines and Mining Development Minister Walter Chidhakwa announced the appointment during his tour of the colliery yesterday.

“Makore is the new substantive managing director from June 1. Chininga reverts to his position of non executive board member,” he said.

It emerged during the tour that the HCCL owed its employees $19 million and the government was not in position to assist in clearing the arrears.

The company has 650 coal mining workers and over 2,500 support staff.

Management also disclosed that HCCL was in need of new coal concessions. The existing ones have a life span of between 25 to 34 years left.

Board chairman Farai Mutamangira last week said HCCL was in need of additional concessions as its coal reserves were running critically low.

Makore is a holder of a Bsc Engineering from the University of Zimbabwe. He served as a managing director of Spescom Media IT, a firm focusing on specialised services and systems integration for telecommunications transmission and access network infrastructure.

Makore is registered with various professional institutions including Engineering Council of South Africa, South African Institute of Electrical Engineers and UK Engineering Council.

Hwange, which is reeling from the effects of under capitalisation, requires $150 million in the medium to long-term to boost its operations.

In an update to shareholders last week, Mutamangira said the company would implement a raft of measures aimed at turning around its fortunes.

As part of efforts to make it profitable, the company will be unbundled into six Strategic Business Units (SBUs) — Hwange Colliery Holdings, Hwange Coal Mining, Hwange Plant and Equipment, Hwange Coal Processing and Cokeworks, Hwange Hospital and Hwange Properties & Estates.

HCCL also plans to resize senior management positions and appoint a chief operating officer. A consultant has already been engaged to rationalise costs.