Hwange Colliery Company Limited (HCCL), Zimbabwe’s leading coal producer, is experiencing a surge in sales thanks to recent investments in mining equipment.
After acquiring new machinery in early 2023, Hwange Colliery significantly increased its coal mining capacity. This resulted in a nearly doubled production output of 989,503 tonnes compared to the previous year.
To manage the production increase and meet customer demand, Hwange has temporarily suspended underground mining for six months. This allows the company to utilize existing stockpiles and avoid potential coal loss due to spontaneous combustion.
In an attempt to meeting market needs, Hwange Colliery has seen a shift in coal sales, with a significant rise in power station coal purchases by Hwange Power Station (48% of total sales compared to 7% previously). This reflects Zimbabwe’s growing power generation needs.
Hwange Colliery’s sales for the first nine months of 2023 have skyrocketed by 163% to 2.8 million tonnes compared to the same period in 2022. The mining division is the strongest performer, contributing 96% of the company’s revenue.
This strategic approach positions Hwange Colliery to capitalize on strong market demand and continue its positive performance in the coming months.