Home » Business » Hwange Eyes U.S.$1Billion Revenue in Five Years

HWANGE Colliery Company Ltd said it is eyeing $1 billion in revenue during the next five years premised on the anticipated increase in demand for industrial and thermal coal.

The expansion of Hwange Thermal Power Station, the anticipated growth in industrial capacity and growing demand for coking coal and coke are expected to spur demand, managing director Mr Thomas Makore said in an interview yesterday.

Government contracted China’s Sinohydro to expand HPS with additional two units to add 600 megawatts at the country’s second largest power plant in terms of generation.

The project would take at least three years to complete.

The Government is also working on measures to boost industrial capacity, a development that is set to boost coal uptake.

“If all these work out, it is possible that we can be a billion dollar company in the next five years,” he said.

Zimbabwe’s manufacturers are operating below 40 percent, according to the Confederation of Zimbabwe Industries, and this has suppressed demand for industrial coal.

“As industry, we anticipate that the demand for industrial coal should more than double in the next few years and this will give us an opportunity to supply more coal,” said Mr Makore.

He said the revival of Zisco will also “cause a major demand” for coke.

Mr Makore said the company, whose shares trade on Zimbabwe, London and Johannesburg Stock Exchanges would revive its coke oven battery to argument its product lines.

He added that there was also a growing potential to supply coke and coking into the region, particularly South Africa, the Democratic Republic of Congo and Zambia.

In the past three months, Hwange increased coal output by more than 60 percent over the past three months after Mota-Engil, a company contracted by the coal miner, started mining on its allocated claims, said Mr Makore in an interview early this month.

Monthly coal output steadily increased from about 140 000 tonnes to 240 000 tonnes and the company expects to reach 300 000 tonnes in the first quarter next year.

Zimbabwe coal output is projected to increase to 7,8 million tonnes next year, from the projected 6,45 million tonnes this year, according to Finance and Economic Development Ministry.

The g performance is largely attributed to anticipated production ramp-up following capital injection by Hwange Colliery Company, and improved output at Makomo Resources.

“Hwange plans to acquire additional concessions that will avail additional coal reserves and augment the company’s capacity to supply the expansion of Hwange Power Station, private thermal power stations, coke demand from iron and steel furnaces and chrome smelting plants,” Finance Minister Patrick Chinamasa said in the 2015 National Budget.

The ongoing recapitalisation of Hwange Colliery will see the company securing equipment financed through loans from PTA Bank and Export Import Bank of India.

Source : The Herald

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