Ndamu Sandu
2 April 2006
COAL producer Hwange Colliery Company Ltd (HCCL) says it is expecting a consignment of US$33 million equipment for its expansion project next month.
The equipment is for the underground mine (US$20 million), open cast mine (US$10 million) and coal fines projects (US$3 million).
Godfrey Dzinomwa, HCC MD told Standardbusiness last week the coal producer had made some payment and was expecting the equipment by the middle of June. Dzinomwa said the coal producer was expecting drills from Europe and earthmoving equipment, water bowsers and haulage trucks from Asia.
He could not be drawn into revealing the sources of suppliers though sources told Standarbusiness that the drill would come from a Scandinavian country, possibly Sweden, and other equipment from China. The drills, earthmoving equipment will be used for the open cast mine, Dzinomwa says.
The HCCL boss said a consignment of mining equipment and a conveyor belt had been ordered for the underground mine while the coal producer has made a down payment for equipment to be used at the coal fine spiral plant.
Dzinomwa said the expansion programme would result in increased output in coke and coal to meet growing demand. In the financial year ended 31 December 2005, HCCL recorded a decline in coal exports compared to the previous year. Coal exports at 39 067 tonnes was 60 447 tonnes less than the previous year. However coke exports for the year at 105 927 tonnes were 40% above the sales achieved in the previous year.
Dzinomwa said exports to China North Industries Corporation (NORINCO)'s smelter in the Democratic Republic of Congo were raking in US$150 000 and the coal miner was optimistic that the exports revenue would grow to $500 000 by the end of the year. HCCL exports coke and coal DRC.
In its financial year ended 31 December 2005 results, HCCL recorded a profit after tax of $264.5 billion from $49.9 billion in the previous year.
The mining concern said it was not declaring dividend citing the need for money to fund the company's recapitalization programme.
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