Harare — HWANGE Colliery Company plans to sink US$20 million (Z$2 trillion) into the expansion of its 3 Main underground mine, as the coal producer seeks to double coal output.

The mine has a 25-year lifespan and a capacity to produce 150 000 tonnes of coal a month.

HCC managing director Dr Godfrey Dzinomwa said the underground mine was now ready for expansion.

He also revealed that his firm was working flat out to restore normal coal deliveries although the initiatives could be hampered by limited finances.

Hwange was employing various strategies targeted at boosting coal production by about 100 percent before October.

"We should acknowledge that our production levels are lower than market demand," Dr Dzinomwa explained.

"However, I am pleased to note that the 3-Main Underground Mine has endured through the commissioning stages and this is now ready for expansion through the introduction of a second continuous miner.

"Earlier this year, we commissioned Chaba Opencast Mine and state-of-the-art equipment is on the way to improve production from this mine. Two drills have already been received and we are confident that this new equipment will go a long way in improving production volumes so that the nation's requirements are not only met, but exceeded."

In recent months, the domestic market has been starved of adequate coal supplies, as HCC struggled to tie up operational costs and revenue available to buttress increased productivity.

HCC has since secured over $1 trillion from offshore investors to finance the purchase of new equipment critical to the firm's turnaround efforts.

Dr Dzinomwa added that a coal fines recovery plant was also being manufactured in South Africa and would be used to convert approximately five million tonnes of a fines dump into valuable coking coal.

The plant is expected to be delivered in the third quarter. while 10 Terex haulage trucks should be shipped in next month from Asia.