The company has finalised the acquisition of loading and drilling equipment worth
Acquisition of additional equipment has been finalised with BELAZ of
"On commission of the above pieces of equipment . . . the company will be able to produce 300 000 tonnes of coal per month," said Mr Makore, who was introduced to shareholders during the meeting. Mr Makore assumed office at the beginning of last month.
"With such production and estimated monthly revenues of at least
The monthly average volumes are presently at
Revenue was down to
Also impacting on revenue was a 57 percent decline in coke and breeze exports after its customers in the
Apart from deploying new equipment, Hwange will embark on the refurbishment of underground equipment, restructuring of the balance sheet including conversion of Government debt to equity and divisionalise the company to managed performance and costs.
Mr Makore highlighted that the legacy debts, of close to
In the past two years, the company paid in excess of
"Financial institutions view
Going forward, the company is considering other revenue streams, including selling coke oven gas to
The company was also looking at supply of coke oven by-products to ZimChem, a company that produces solvents and coal tar products as well as methane gas production.
Additional opportunities for exporting coking coal to
As part of its long-term plans, the company applied for additional mining concessions in the western area coal fields.
"The reserves will enhance the life of the of the mine and give impetus to the new prospects that are in the pipeline," said Mr Makore.
Meanwhile, Hwange employees will proceed with a court action they took against their company in relation to compensation of shares they bought in 2007 after shareholders voted against a resolution to pay back about
The share option scheme has been brought at previous AGM's with the initial resolution seeking to allocate the respective shares to workers but the route was discontinued.
After engagements with workers, it was "mutually" agreed that the employees be refunded their money. The board was seeking approval to repay the workers instead of allotting shares.
But a worker representative said it was high time the matter be resolved so that workers "get compensated."
Workers have already approached the courts seeking a compensation of
A shareholder then requested the board to relook into the matter. But chairman Mr Farai Mtamangira said: "I don't think much will be achieved by taking the matter back to the board.
"It looks to me that in the absence of this issue not being carried in this meeting, then it can only be left to be resolved through litigation as it appears."
He said the previous board took a decision in 2010 to compensate the workers and all the new board was doing was engaging the parties to get shareholders' approval to implement the resolution.
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