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Leonard Ncube recently in Hwange
HWANGE Colliery Company workers have gone on a spending spree — literally buying everything from shops and injecting life into the usually sleepy coal mining town.

This follows this week’s windfall when the coal miner paid its workers seven percent of their outstanding salaries in line with the Scheme of Arrangement deal.

Some workers received an average of between $800 to $1 000, being part payment of their salaries, after going for about three years without being paid.

The development comes as the mining giant’s production for May rose by more than 300 percent to 170 000 tonnes compared to 52 000 tonnes in April.

The increased production followed shareholders’ approval of a debt repayment scheme, which allowed the company to borrow working capital. A snap survey showed that the coal mining town was now a hive of activity day and night this week with businesses such as furniture shops, supermarkets, beer outlets and other dealers, enjoying a new lease of life fuelled by an improved buying power.

Those who spoke to The Chronicle said beer outlets were now a hive of activity while ladies of the night are reportedly also cashing in on the new lease of life.

“Hwange has changed. Workers are just everywhere spending money. They bought everything in cash from a furniture shop and if you go there now you will be told all the furniture has been sold. Nightclubs now open throughout the night while a supermarket almost failed to close a few days ago as people were still packed inside by closing time,” said a resident.

Hwange Business Community representative Mr Reeds Dube said it is all smiles in Hwange Town.

“The town is very much alive since Hwange Colliery paid its workers. People are really happy and have literally bought everything from shops. They have been buying beds, sofas, fridges and TVs and all I can say is that the town is getting very much alive,” said Mr Reeds.

He commended the Government and HCCL for their efforts to pay the workers who had gone for a long time without being paid.

“It’s correct to say that stocks are getting finished in shops and we hope this trend by the company continues so that people have food on their tables,” added Mr Dube.

He challenged the workers to also pay fees for their children most of whom owe schools large sums of money.

HCCL corporate affairs manager Ms Rugare Dhobbie said the company will continue honouring its obligations and pay the next premium in six months.

“According to the Scheme of Arrangement, the workers will be paid another lump sum after six months and thereafter until their amount owing of three years is cleared. They will continue getting their monthly salaries which they have been getting since December,” she said.

Workers have said they were elated by the windfall.

In May HCCL creditors approved a Scheme of Arrangement that stopped litigations and writs of executions, which had crippled the company’s operations and also allows the colliery to borrow working capital from banks.

Workers’ morale had been boosted following the part payment of their salaries and they were now confident that their outstanding salaries will be paid.

@ncubeleon