Harare - The country’s major coal producer Hwange Colliery Company is looking at increasing its monthly production tonnage to 300 000 tonnes per month.
The miner which resumed operations in January this year, halted underground mining operations in 2015 after the key equipment provider, Continuous Miner (CM), which accounts for almost half of production, broke down. The CM is a coal extraction machine, which works with auxiliary equipment during production.
In a statement accompanying the Company’s financial results for the half year ended June 30, 2018, Acting Managing Director Shepard Manamike said its half year performance demonstrate that increased production can be achieved and will be complemented by some targeted efficiency interventions that are expected to impact positively on the costs of sales.
He said, the Company’s strategic priorities for the second half of the year (H2, 2018) will continue on increased production, open cast mining, resuscitation of underground mining operations and coke production among others.
“Through to year end, the company shall focus on increased production from an average monthly tonnage of 136,643 tonnes to a sustainable monthly production tonnage of 300,000 tonnes per month.
“Further, since the Company managed to resuscitate the underground mine operations, it shall focus on mining high value coking coal.
“This is with the resuscitation of the Company’s own coke oven battery in mind that beneficiation of coking coal to coke shall create more value for the Company.”
Manamike said the Company’s open cast operation contributed 296,958 tonnes for the half year which represents 36 percent of the total half year production.
“There were constraints in the logistics and processing section of the value chain which are being addressed.
“Coal movement was largely by road which was an expensive mode of coal movement. The revival of the National Railways of Zimbabwe will come as a solution to the logistical requirements for the product to reach to customers in a cost effective way. Efforts continue to be made to secure working capital.”
Manamike also pointed out that the coal miner diligently pursued the resuscitation of its underground mine operations which was out of production since July 2015 after its continuous miner had a major breakdown.
“Since June 2018, the company managed to bring back the underground mine into operation.
“The target was to bring the operation to full production capacity by end of the year. At 50,000 tonnes per month the operation will contribute significantly to the Company’s bottom line and enhance exports,” he said.
On coke production, Manamike said the Company’s intended takeover project of the Hwange Coal Gasification Company (HCGC) Coke oven battery pursuant to a BOOT Agreement with its Chinese partners in HCGC was delayed.
“The Company has placed more emphasis and attention on the resuscitation of its own coke oven battery while it shall still continue exploring options for the takeover of the HCGC Battery,” he said adding that the Company concluded an Exploration Agreement with Fugro Earth Resources to undertake exploration and drilling of the Western Areas Concession.
He said commencement of works was expected in the last quarter of the current financial year.
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