A Zimbabwean company, Hwange Colliery Company Limited (HCCL) has purchased an equipment worth over US$33 million to improve production at the mines to around 300,000 tonnes a month, from 150,000 tonnes.
Newly appointed Managing Director Mr. Thomas Makore said that Hwange, which is struggling with legacy and current debt, was currently mining an average of 150,000 tonnes a month and said that the equipment, which is coming from Belarus and India between September and October, will allow them to produce coal quantities at targets that they have set.
The acquisitions are being made through a vendor financing agreement from development financial institutions such as PTA Bank.
In December 2013, Hwange suffered a US$ 31.6m loss, down from a US$ 3m profit the previous year. By close of the year, HCCL’s current liabilities stood at US$ 162m, far outstripping its assets at US$ 85m.