Hwange Colliery Company (HCC) has said production volumes, which have risen to around 300 000 tonnes in the mid-year, will top 400 000 tonnes by year end when production at the three main underground mines resumes.
By Staff Reporter
Speaking at a stakeholders’ cocktail in Harare on Thursday, HCC chairperson Winston Chitando said the 100-day rapid results initiative coded-named Gijima, launched in April, had brought with it improved performance from the second quarter.
“The Gijima Phase 2 project is also now in motion with the establishment of six teams focusing on safety, quality, processing, coal movement, exports and equipment availability,” he said.
Chitando said the company had also entered into two 25-year coal supply agreements, one with Zimbabwe Power Company and the other with Per Lusulu Power, an independent power producer in Matabeleland North.
Chitando said such offtakes would form an anchor to the company’s sustained turnaround strategies.
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“The company’s survival strategy going forward is to focus on lowest production cost techniques and grow the business back to profitability through high-volume production above break-even point, cost reduction and increased sales volumes,” he said.
“We will also balance the product mix so that it includes low and high margin products such as thermal and coking coal respectively. The company looks set to bounce back to its blue chip status through teamwork.”
HCC managing director Thomas Makore said the coal producer had commenced its turnaround journey to restore the company to its past glory and required the unwavering support from all stakeholders.
“The new Hwange demands that stakeholders, especially the media, be given the attention they need. The Hwange board and management prioritise the strengthening of relations with the media and we not only see you as reporters, but as partners on this new journey,” he said.
“The new Hwange has an open-door policy and is open to scrutiny. We believe that our colleagues from the Fourth Estate have the kind of influence that can turn Hwange into a credible and trustworthy brand that stakeholders are proud of.”