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Fairness Moyana, Hwange Correspondent
COAL miner, Makomo Resources, says following recapitalisation, its output will increase from 200,000 tonnes a month to 450,000.

Company director Raymond Mutokonyi said the firm has established a solid footing in the industry five years after its birth.

He said the company now has the capacity to meet the increased demand for coal.

“We now have the capacity to respond to increased demand for coal from both local and export markets and we can produce up to 450,000 tonnes a month,” said Mutokonyi.

The bulk of the coal produced by the mine is consumed by Hwange Power Station while the remainder is supplied to small thermal power stations as well as regional markets.

Mutokonyi said as part of its capitalisation efforts in response to increased demand for coal, the company bought a screening plant, three 50 tonne dump trucks, two 100 tonnes excavators and two front-end loaders two months ago.

He, however, could not be drawn to disclose the cost of the new equipment.

Like any company facing cash-flow challenges, Mutokonyi said, the company was constantly engaging government to review its tax regime by allowing certain exemptions to make the sector viable while employing cost cutting measures.

Coal mining companies have for the last four years been groaning under increasing production costs amid general decline in global commodity prices.

Matabeleland North regional mining director Julius Moyo said the government was aware of the challenges facing the sector and was in the process of coming up with measures to assist companies reduce production costs.

“Despite increased mining costs, the price of coal to thermal power stations has been stagnant over the last four years, which has resulted in viability challenges as mines find it difficult to break even.

“The ministry has initiated measures to alleviate the economic hardships through measures such as tax exemptions,” he said.

Makomo is the second largest coal mining company after Hwange Colliery and it started operating in 2010.

Since then the company has supplied 4.2 million tonnes to Hwange Power Station while one million tonnes have been supplied to other small thermal power stations.