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Business Reporter
HWANGE Colliery Company Limited (HCCL) has moved to calm anxious creditors who are owned nearly $300 million, insisting that its debt management plan will “soon” bear fruit.

The giant firm has recently admitted insolvency and is struggling to secure working capital, which has seen its output dropping to a record low of about 30 000 tonnes per month from a peak of 300 000 tonnes.

The coal miner assured shareholders and creditors in a notice that its engagement process would resolve the debt burden.

“The company is still engaged in discussions connected to a debt management plan with its creditors. The said debt management plan is being finalised.

“The creditors shall be advised of the scheme meeting date, time and venue of the scheme meeting,” said HCCL.

Pending finalisation of the foregoing discussions, the firm advised shareholders and members of the public to “exercise caution” when dealing in the company’s shares and to consult their professional advisors before dealing in the company’s shares.

The colliery’s creditors include its workers and suppliers of different inputs as well as financial institutions who offered loans to the entity.

The Zimbabwe Stock Exchange-listed company has been on a loss-making path despite support from the Government with creditors attaching its key properties in a bid to recover their money.

Recently, the Government gave HCCL the greenlight to convert $69 million debt into equity as well as giving new mining concessions.

Once Zimbabwe’s largest coal producer, the firm also intends to come up with a number of debt clearance instruments and creditor payment plans with the Government as part of turnaround strategies.

In 2015, the Government guaranteed two capitalisation transactions that were vendor-financed through the PTA BELAZ facility to the tune of $18,2 million and the Indian Exim Bank’s $13,03 million BEML facility.

The transactions saw HCCL acquiring new mining equipment that included 10 dump trucks, five front end loaders, two wheel dozers, two excavators, two water bowsers and three bull dozers.

Despite acquiring new machinery, Hwange is yet to improve on its production levels with media reports saying output at the colliery has gone down.