Harare, Zimbabwe — MININGREVIEW.COM — 04 January 2010 – Zimbabwean-based Hwange Colliery Company Limited “’ which is engaged in the mining and processing of coal and production of coke and related by-products “’ requires an estimated US$175 million (R1.3 billion) for recapitalisation to restore and expand production.
The Herald newspaper “’ quoted here by allAfrica.com “’ reports that the Zimbabwean government will support initiatives towards recapitalisation of Hwange Colliery, including the procurement of mining equipment to restore and expand the company’s production capacity.
According to the three-year “Macro-Economic Policy Framework 2010-2012” unveiled by the ministry of finance last week, HCCL requires just under US$200 million (R1.5 billion) to raise coal extraction activities. “Indications are that some US$175 million (R1.3 billion) will have to be mobilised as part of the first and second phases of recapitalisation,” reads an excerpt from the macro-economic framework.
Injection of fresh capital into HCCL would allow for regular repair and maintenance of mining equipment, including the dragline, which is critical for the colliery firm to increase coal output.
In the three-year macro-economic policy framework, finance minister Tendai Biti said government would keep supporting the country’s largest coal miner in efforts to ensure optimal power generation.
“Framework measures in support of restoring production of coal at Hwange will be complemented by other interventions to guarantee movement and delivery of supplies throughout the country. This will be complemented by continued implementation of a skills training programme, which is already underway and has managed to lure back some key skills for the company,” he added.