Home » Politics » ZIMBABWE’S HWANGE COLLIERY SEALS TWO LONG-TERM DEALS WITH LOCAL POWER COMPANIES

HARARE, Zimbabwe's Hwange Colliery Company says it has signed two 25-year agreements to supply coal to the Zimbabwe Power Company (ZPC) and Lusulu Power, an independent producer operating in Matabeleland North province.

ZPC runs three small thermal power stations -- Munyati in Kwekwe in Midlands province as well as the Harare and Bulawayo power stations. It also generates electricity from the Hwange Thermal Power Station which will soon be expanded to add a further 600 megawatts (MW) to existing capacity.

Hwange Colliery said in a statement Wednesday that the agreements were part of a turnaround strategy which it was implementing. The two initiatives that will see the company supplying more than 200,000 tons of coal per month to each of the above mentioned companies are part of the turnaround strategy that the company has embarked on, it said.

In 2015, the Zimbabwe government granted Hwange Colliery three new concessions following concerns that existing ones were running out. Hwange Colliery, which has been hurt by low production, narrowed its loss for the year ended December 2016 to 90 million US dollars from 115 million USD the previous year.

The company is implementing a turnaround strategy targeting, among others, addressing its debt, said to be over 300 million USD, as well as implementing a low-cost strategy targeted at improving production efficiencies.

A major retrenchment exercise in which more than 1,000 workers are being laid off and slashing of salaries for management are among measures that the company is implementing to reduce costs. The company is also aiming to boost its open cast mining operations as well as resuscitate underground mining, with the aim of returning to profitability in 2018.

Source: NAM NEWS NETWORK

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