COAL miner Hwange Colliery Company (HCCL) and China North Industries Corporation (NORINCO) are still negotiating a proposed barter trade of commodities.

According to the barter deal, HCCL will cede coke and coal for haulage trucks and earth moving equipment. The equipment from NORINCO will be used by HCCL to increase the mining output of coke and coal.

John Nkala, HCCL's Marketing and Public Relations Manager, told StandardBusiness the two parties were in negotiations working out the modalities on how the two companies can progress in the barter trade.

Nkala said the arrangement with NORINCO was still at a proposal stage and would move forward if all the parties agree to the terms of the arrangement. HCCL will work with Norinco as trade partners and progress to joint ventures once discussions are concluded.

Nkala said HCCL has been supplying coal to NORINCO's sister company FEZA mine in Democratic Republic of Congo. The coal and coke from Zimbabwe would be used to fire smelters in the DRC with the end products being shipped to China.

HCCL and Norinco signed a memorandum of understanding with NORINCO last year in a move meant to increase the production of coke and coal last year. Officials from the Chinese firm toured the mine in December. HCCL is listed on the Zimbabwe Stock Exchange, London Stock Exchange and JSE Securities Exchange.