Sustainable coal pricing model in pipeline

Fairness Moyana in Hwange
TALKS are underway towards reviewing the coal pricing model to make it more sustainable following an outcry from coal producers, a senior official has said.

The coal producers have recently complained that product price was too low and did not reflect with the high cost of production. A tonne of coal is being sold for US$30 while on the regional market it is fetching between US$38 and US$47 internationally.

Speaking in an interview recently Mines and Mining Development minister, Winston Chitando, said efforts to ensure sustainable pricing for coal was underway with an announcement on the review due this month.

“Government is committed to ensure that there is a sustainable pricing model, discussions are underway between the coal producers and the relevant Government departments,” he said.

He said the coal mining industry played an important role in the economy and was focused towards the US$12 billion mining industry by 2023.

“As you are aware of the role that coal producers play in supporting Government efforts to attain a middle-income economy by 2030, as envisaged by President Mnangagwa. We will continue to support these players especially with the various Government and private sector projects currently underway such as construction of power stations and coking plants. The demand for coal will be high. So we need our producers to be well capacitated to meet and satisfy that demand,” said the minister.

President Mnangagwa has also stressed the need to utilise available resources such as the land and minerals to drive economic growth.

“Let me assure you support from my administration is 100 percent as long as I see that you are patriotic and committed to developing our country,” said President Mnangagwa.

According to the chairperson of Coal Producers Association, Mr Raymond Mutokonyi, the producers want a cost reflective price model.

Mr Mutokonyi who is an executive director for Makomo Resources bemoaned failure by Zimabwe Power Company to pay for deliveries arguing that the debt had ballooned to $900 million and was crippling production.

The Coal Producers Association brings together coal producers in Hwange namely Hwange Colliery Company, Makomo Resources, Zambezi Gas and Galpex also known as Coalbrick Mine.