Zimpapers Logo

One of the haulage trucks delivering equipment to Hwange Colliery Company from Durban, South Africa yesterday (Picture by Fairness Moyana)

Fairness Moyana Hwange Correspondent
THE first consignment of new equipment procured for the resuscitation of Hwange Colliery Company Limited (HCCL) arrived at the plant in Matabeleland North province yesterday, signaling the beginning of a new era for the ailing firm.

The much awaited delivery of new machinery from Belarus comes under the $18.2 million funding under the PTA Bank Belaz facility that the giant colliery firm struck with the institution recently.

The equipment consists of 10 x 130 ton dumps, five front-end loaders and two dozers.

The first consignment of parts of the machinery arrived from Durban, South Africa yesterday afternoon and the rest is expected within the next 10 days, management said.

Managing director Thomas Makore confirmed the arrival of the equipment and said 53 haulage trucks had been dispatched to ferry the consignment, which is going to boost production levels to around 450,000 tonnes per month from 300,000 tons.

“Yes I can confirm that the first batch of equipment has arrived from Belarus as part of the company’s recapitalisation efforts.

“There’re 53 haulage trucks that will move the various parts and components of the new equipment from the port in South Africa. So we expect the process to take about 10 days,” said Makore.

He said in light of prevailing economic challenges and competition from other players, HCCL was exploring other capital generation initiatives such as coal bed methane gas for power generation, plasma gasification and converting coal to liquids.

Two weeks ago the parastatal announced a double capitalisation breakthrough to the tune of $31.2 million under a vendor-finance scheme from Belaz and BEML facility. The other consignment of the equipment under the India Exim Bank worth $13.03 million includes two excavators, two water bowsers, three front-end loaders, bull dozers and drill rigs.

This consignment is expected by next month.

Makore said the company had also entered into toll coking arrangements with South Mining and Hwange Coal Gasification Company in order to maintain supply of coke to the market.

He said the ageing plants and equipment such as the draglines, which were becoming obsolete, had been a major stumbling block to the company’s ability to produce more coal due to lack of spare parts.

The recapitalisation of three main underground mines remains at the top of the firm’s priorities, Makore added.

“Most of our plants and equipment are old or don’t have spares including three main. So we’re working on recapitalising the underground mine so we can increase production levels. The dragline, one of our important pieces of equipment, is very old having started working here in 1983,” said Makore.

“So from time to time we’ve breakdowns, which are coupled by lack of spares to repair it as it’s slowly becoming obsolete. However, the dragline is working, currently at JFK open cast pit.”

Last year HCCL contracted Portuguese owned Mota Engil to mine coal at its Chaba pit as it sought to mitigate production costs brought on by ageing equipment and lack of spare parts.

The company has since applied to the government for more concessions in order to extend the life of the mine, which is said to be left with less than 30 years in reserves.