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Dumisani Nsingo in Hwange Business Reporter
ZESA power generating unit — the Zimbabwe Power Company — is battling to settle more than $12 million owed to Hwange coalminer Makomo Resources for coal deliveries at Hwange Power Station over the last four years. Makomo Resources general manager, Mr Sam Mabvira, said the debt it was owed by the power utility was negatively affecting his company’s operations and viability.
He said this on the sidelines of the company’s celebrations to mark its fourth year anniversary in the coal mining business.
Zesa’s subsidiary, the Zimbabwe Power Company (ZPC), which operates HPS has been Makomo Resources’ biggest customer since the coal mining concern started operations in 2010.
The coal-mining company used to deliver 150 000 tonnes of coal a month at HPS but was forced to lower the volumes to 80 000 last year owing to the cashflow challenges that were being faced by the power utility. However, the deliveries have since June this year risen to between 100 000 and 120 000 a month following a request by ZPC to up the volumes to be supplied at the power station.
“ZPC owes us about $12 million for the coal orders we have delivered at HPS. The non-payment of this debt is affecting us as it has led to the stopping of the fuel allocation facility which we enjoyed with Engen whereby we used to pay after an agreed period. However, we failed to meet the deadline for the payment of the fuel supplied to us resulting in Engen closing this facility.
“Even if the capacity is there the non-payment by ZPC is affecting everything down stream with most of our transporting contractors pulling out due to our failure to pay them on time and our efforts to lure them back are being frustrated by the fact that we can’t guarantee them prompt payment for moving our coal to the power station. We are more or less living from hand to mouth,” said Mr Mabvira.
Apart from supplying HPS, Makomo also delivers its products to Bulawayo, Harare and Munyati thermal power stations as well as the agricultural (sugar plantations and tobacco farmers) and manufacturing sector across the country.
“We have also started delivering 4 000 tonnes per month to Zimasco and we have had some inquiries from Delta Beverages and in an effort to improve efficiency in the movement of our coal to the smaller thermal power stations we have since acquired four locomotives which will arrive in the country next (this) week and these will have a capacity to ferry 2 000 tonnes,” Mr Mabvira said.
National Railways of Zimbabwe public relations manager, Mr Fanuel Masikati, said the acquisition of the locomotives by Makomo Resources was a welcome development as it was likely to capacitate the rail company.
Makomo Resources director, Mr Raymond Mutokonyi, said the company was focusing at further exploring the regional market after managing to penetrate Zambia.
He said plans by the company to set up a 660 megawatt thermal power station was “work in progress”.
Online Reporter
Londile Moyo