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Zim’s Hwange making strides with turnaround plans

18th October 2019

By: Tasneem Bulbulia

Deputy Editor Online

     

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JSE-listed Hwange Colliery Company achieved an improved financial performance for the half-year ended June 30.

The company’s principal activities include exploration for coal, as well as mining and processing the fossil fuel and the production of coke and related by-products in the north-western part of Zimbabwe.

Its revenue increased by 128% year-on-year to Z$69.8-million. It also posted a profit of Z$3.5-million, compared with the loss of Z$23-million reported for the first six months of 2018.

The company said last week its contract miner had stopped mining in December and resumed operations only in August. The company resumed opencast mining in March. As a result, production declined by 52% year-on-year to 39 4704 t for the interim period.

The company noted that it had achieved some improvements in the last three months of the interim period, owing to targeted interventions, which it would continue to pursue.

These included increasing production; stabilising the opencast mining operation and the underground mine operations; resuscitating the processing plants; acquiring its own coke oven battery while it continued takeover discussions with Hwange Coal Gasification Company; cost reductions; engaging contractors for pillar mining on the old M block underground mine operation; and improving efficiencies and competitiveness.

Looking ahead, the operating plan for the second half of the year will continue to focus on increased production and improved efficiencies. However, the increasing production requires the allocation of more funding to the company’s operation, which means it will have to focus on its core business of mining and reduce nonmining costs.

The company will explore options to deal with legacy debt, while the production of high-margin and high- value coking coal will be increased.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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