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FLASHBACK . . . Vice President Phelekezela Mphoko officiates at the handover of the new equipment recently

Martin Kadzere Senior Business Reporter
COAL miner Hwange Colliery Company Limited says the bulk of the equipment it recently acquired from India and Belarus has been put into operation, which should translate into increased production in the next few weeks. “All the 17 machines acquired from Belaz of Belarus have been successfully commissioned and deployed. They are performing as expected,” company spokesperson Mrs Eltah Sanangura said yesterday. Eleven of the 17 machines acquired from BEML of India have also been successfully commissioned and deployed.

She said the other six machines experienced hydraulic oil leaks “which is not unusual in the commissioning of such mining equipment”. “However, immediately after reporting the problem to the supplier, a highly specialised team was dispatched to Zimbabwe to investigate and supervise the fixing of the oil leaks,” she added.

Mrs Sanangura said four of the machines were now working and the remaining two would be fixed by end of this week. Thereafter, the machines would be deployed to the mine.

“We are happy to advise that the hydraulic leaks experienced were speedily addressed by the supplier since the equipment is under warranty. Going forward, technical support for the BEML machines will be provided by a local BEML accredited agent.”

The equipment was acquired for $32 million through facilities provided by Eximbank of India and PTA Bank. The JKL open cast mine, where the equipment is being deployed is expected to produce 250 000 tonnes per month from 100 000 tonnes.

After successfully acquiring equipment for the open cast mine, the company is now targeting to re-equip its underground mine and rebuild its coke oven battery, which produces coke. It will also undertake a $80 million rights issue to be underwritten by the Government, a 32 percent shareholder in the coal mining company.

Last week, the Government granted Hwange new coal concessions in Lubimbi and western areas. The new concessions, with an estimated underground resource of 750 million tonnes, according to a independent competence report done by SRK Consulting. The company, whose shares trade on the Zimbabwe, London and Johannesburg stock exchanges may consider a joint venture to develop new mines at the new coal fields.

Apart from Lubimbi and western area coalfields, Hwange has also identified deposits in the Lowveld and the company is currently conducting technical feasibility with a view to acquire. This part of the country is strategic because of its proximity to the South African market and port of Beira and Maputo in Mozambique.