Coal miner Hwange Colliery Company (HCC) is recapitalising to increase underground mine production capacity by 150 000 t/m of coking coal in efforts to meet the increased demand from a recovering market.

 

The company has an installed coal production capacity of 500 000 t/m; however, it currently operates at only 300 000 t/m – 200 000 t/m of coal is supplied to power stations, while the remaining 100 000 t/m is supplied to industry.

 

“Currently, there is a shortage of supply to industry, as HCC is not meeting the demand, owing to aging equipment. Most of the company’s equipment is over ten years old, with a low efficiency,” HCC MD Fred Moyo.

The listed miner said further, equipment suppliers are unable to service the equipment or supply spare parts and had started attempts to manufacture its own spare parts in efforts to mitigate this. However, the move is not sustainable.

The demand for coking coal is driven primarily by coke export opportunities, parti-cularly into the Democratic Republic of Congo and Zambia, as well as potential new demand from Zimbabwe Iron & Steel Company.

The recapitalisation of the underground mine, which will cost between $40-million and $45-million, will be undertaken over two years, mainly owing to the standard long lead-times from manufacturers.