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Thomas Makore

Business Reporter
HWANGE Colliery Company Limited (HCCL) managing director Thomas Makore has admitted the recent $31,2 recapitalisation of the giant parastal was yet to yield expected results.

In an exclusive interview in response to government concern over continued failure to ramp up production, six months after acquisition of new mining machinery, Makore blamed technical hitches in some of the imported equipment.

“Our production is not yet at the level we expected after the commissioning of new equipment. We’re still at 200,000 tonnes per month,” he told Business Chronicle.

“We still have technical issues that we’re sorting out with the supplier (BEML) of the two excavators.”

Makore said the technical issues were mainly to do with the hydraulic system components of the excavators.

He said the situation was being attended to “as a matter of urgency” insisting the equipment was “brand new”.

The machinery hogged the limelight soon after its commissioning by Vice President Phelekezela Mphoko on June 19, 2015, following allegations that it was second-hand and hence substandard.

HCCL vehemently denied the allegations.

“We’ve managed to engage the supplier over the technical issues because the equipment is brand new and under warranty,” said Makore.

The colliery secured the new machinery under a government-facilitated vendor financed scheme through the PTA BELAZ facility and BEML.

The deal saw the colliery receiving 10 dump trucks, five front-end loaders and two wheel dozers from BELAZ while two excavators, two water bowsers, three front-end loaders, three bulldozers, three drill rigs, a motor grader and one tyre handler were supplied by BEML.

It was hoped that by September this year, the new mining equipment would boost productivity from the current 200,000 tonnes per month to about 450,000 tonnes inclusive of output by Mota- Engil, a contractor that the colliery engaged last year.

While presenting the 2016 national budget last week Thursday, Finance Minister Patrick Chinamasa had no kind words for HCCL management .

The minister said the government was not amused with the level of performance at Hwange.

“All the above support is over and above the conversion of $80 million Hwange Colliery debt into equity . . . but there’s no noticeable change at HCCL. The purchase of new equipment was expected to increase coal production supplies to local industry,” he blasted.

“Management should urgently address this situation. Clearly, we can’t grow our economy if our corporate management structures at both public and private are allowed persisting, demonstrating inefficiency and unaccountability over use of scarce resources.”

The government has also given the company new coal concessions with the capacity to extend the mine’s lifespan by up 50 years.
HCCL is one of the most strategic state entities in the quest to turn around the economy.

Its services are critical in the energy industry, an important arm in the development of vibrant domestic industry.

Of late there were reports that HCCL was even struggling to supply coal to the nearby Hwange Power Station, thereby contributing to the prevailing reduced power output.