NRZ, Hwange sign coal movement deal

The deal, known as Service Level Agreement, is meant to ensure coal is moved to the port of Maputo in Mozambique and other local destinations without fail.
NRZ has been failing to move cargo due to financial constraints, a development which is also scuttling efforts to revive the economy.
HCCL general manager Fred Moyo said the agreement was the first of its kind.
“The agreement is set to guarantee the movements of our freight without fail by NRZ to various markets within and outside the country.
“Under the agreement NRZ set aside a certain number of wagons for us to move our coal and if we fail to do that we pay and if they fail, they pay us,” he said.
Moyo said the deal would allow the coal miner to export coal to India and other destinations.
“We clinched a deal to supply cocking coal to India and with this contract we are assured that our coal will be moved to Maputo port en route to the Asian country,” he said.
He said through the deal either party was obliged to meet its obligation.
“We all must meet our targets or we pay cash,” he said.
Last year NRZ moved 3,5 million tonnes of freight.
NRZ general manager, Retired Air Commodore Mike Karakadzai, confirmed the development saying HCCL would give NRZ a freight movement plan which must be met.
“This is good for us since it means better returns for us and it guarantees business as well. Yes, we have signed service level agreement with NRZ.
“HCCL will also be able to service its customers since penalties are also in place to press action,” he said.
Rtd Air Cdre Karakadzai said NRZ was very much prepared to meet demand because coal was one of the commodities it had ring fenced as it was critical for industry.
The other product is raw sugar which should be transported from the field to the mills and to the processing plants.
He said the parastatal had signed service level agreements with other companies including mining concerns. — New Ziana.