Hwange Colliery Company Limited (HCCL), Zimbabwe’s largest coal producer, is experiencing a resurgence thanks to a strategic investment in mechanizing its mining operations. This news comes according to a recent trading update by the company’s administrator, Mr Munashe Shava, reported in The Chronicle
The turnaround is evident in HCCL’s third-quarter performance for 2023. The mining division, bolstered by the new equipment acquired in early 2023, soared to contribute a whopping 96% of the company’s revenue, a significant increase from 91% the previous year . This growth is even more impressive considering a slight dip in coal sales prices during the same period.
The impact of mechanization is clear. Coal production nearly doubled year-on-year, reaching 989,503 tonnes in Q3 2023. This translates to almost double the amount of coal sold (911,245 tonnes) compared to the same period in 2022 [1]. Mr. Shava attributes this directly to “efficient and effective machinery”.
Hwange Colliery Company, currently under reconstruction and suspended from the Zimbabwe Stock Exchange, is showing promising signs of recovery. It’s important to note that while profit figures were not disclosed, Mr. Shava did highlight that the unaudited profit before tax sits at US$10.2 million, exceeding performance in previous years
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