Hwange Colliery Company Limited (HCCL) will today commission the $31,2 million equipment which is set to see the company moving towards the projected 450 000 tonnes output monthly.
BY BUSINESS REPORTER
The equipment was acquired from BELAZ and BEML under vendor-financed facilities. PTA funded $18,2m purchase of equipment from BELAZ. India Exim Bank financed the purchase of equipment from BEML.
HCCL will get 10 dump trucks, five front-end loaders and two wheel dozers from BELAZ. BEML will supply HCCL with two excavators, two water bowsers, three front-end loaders, three bulldozers, three drill rigs, a motor grader and one tyre handler.
The new equipment, together with the work of a contractor — Mota Engil — would see output totalling a minimum of 450 000 tonnes per month by the second half of the year, the company said in a progress report shared by executive management.
Mota Engil was engaged last year to produce 200 000 tonnes of coal monthly. It began open cast mining in August.
Mota Engil’s total output has reached 996 000 tonnes.
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In a May 7, 2014 letter to shareholders, HCCL board chairman Farai Mutamangira said the company was targeting to produce at least 450 000 tonnes of coal per month.
“This will assure HCCL of a monthly turnover of not less than $18 million.
“At this level, and assuming costs are contained below $9 million a month, HCCL will have sufficient turnover and gross margin to not only grow the business, but also to service its legacy debt which currently stands at about $150 million,” Mutamangira said.
In its financial year results for 2014, HCCL recorded 1% increase in revenue to $72 million. HCCL is in the process of raising $88 million from shareholders and $51 million from a private placement to reduce its debt and for recapitalisation.
