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Martin Kadzere Senior Business Reporter
The Indian government has approved an $18 million loan facility for Hwange Colliery Company Ltd through the Export and Import Bank of India, an official has said.
Exim Bank, the facilitator and promoter of foreign trade in India is wholly owned by the Indian government.

Hwange has also finalised the $15 million facility with PTA Bank, which will see the coal miner procuring open cast equipment from BEML of India, managing director Mr Thomas Makore said.

“The PTA Bank facility is in the final stages of conclusion,” Mr Makore said in an interview.

“The equipment in Belarus has been inspected and is ready for shipment. The facility by India was also approved by the new Indian Government and what is now left is to raise the necessary guarantees, which we are hoping to conclude very soon.”

As such, Mr Makore said the commissioning of new equipment will result in production increasing from 150 000 tonnes to about 300 000 tonnes by year end.

With additional output from Mota-Engil, the company contracted by Hwange to extract coal, monthly production is expected to exceed 500 000 tonnes,” Mr Makore said.

The company recently concluded a $6 million loan facility with BancABC and the funds would be channelled towards procurement of fixed and mobile equipment for open cast mining.

“The recapitalisation of the company is an ongoing exercise and we will soon be looking at other options including rights offer to raise additional working capital,” said Mr Makore.

For the past two years, Hwange has been focusing on raising production capacity and with the anticipated increase in production; the company is now looking at new potential markets.

“There is a steady demand for our coke products and we are pushing reasonable volumes to South Africa, Zambia and the Democratic Republic of Congo,” said Mr Makore.

In the short term, demand would be spurred by the tobacco sector while in the medium to long term, coal uptake will increase on the back of revival of the manufacturing industry and upcoming thermal power projects in the country and the region.

“The overseas remain a potential market. However, we need to reduce our logistics costs. This requires collaborative efforts with the National Railways of Zimbabwe and rail operators in South Africa and Mozambique to ensure efficient ways of getting the products at the ports. We have received enquiries particularly from India.”