Coal miner plans US$60m additional investment

25 Nov, 2021 - 00:11 0 Views
Coal miner plans US$60m additional investment South Mining coking plant

The Chronicle

Prosper Ndlovu, Business Editor

COKING coal producer, South Mining (Pvt) Limited, will invest an additional US$60 million next year as it expands operations with focus on establishing a highly integrated business model.

This will see the company diversifying its operations to include exploration works, mining, coal processing, coking coal and by-product processing, with a turnover of close to a US$100 million per year, company administrator, Mr Charles Tawanda Muchabaiwa told Business Chronicle.

The expansion is expected to create more job opportunities for locals while enhancing the growth of Matabeleland North Province’s economy and contribution to the national economy.

Already, the Hwange-based company is one of the top coke processing firms supplying the local and export market.

It was one of the Hwange mining companies that were visited by President Mnangagwa last year, after it invested US$50 million into the construction of a new coke battery oven under phase one.

Coke, whose by-products include crude tar, benzol and coke oven gas, is a critical in the ferrochrome and stainless-steel smelting industry and has a high export demand than ordinary thermal coal.

Mr Muchabaiwa said the Government has since granted the business a mining licence, paving way for commencement of extractive operations early next year.

“South Mining will invest a total of US$60 million by the end of 2022, which includes the coke oven battery phase 2, exploration and mining ROM coal processing and by-product processing,” he said.

“South Mining will become an integrated company with exploration, mining, coal processing, coking, by-product processing with a turnover of US$70-80 million per annum.

“The company will start mining early 2022 as we have been granted a mining licence. The organisation will also aid in the creation of 1 200 jobs.”

Mr Muchabaiwa said his company was determined to continue enhancing stakeholder relations, which informs its corporate social responsibility investments.

For instance, he said the business has committed to paying all hospital bills for Alisha, a young local girl who was involved in an accident, sometime ago. “Moreover, there is also the ongoing construction of a community library in Empumalanga, Hwange,” he said.

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