Sales revenues are expected to reach
Mota-Engil, which was contracted to mine for Hwange has commenced operations and is set to produce about 200 000 tonnes of power and industrial coal per month by September.
"We are also expecting to double our own capacity from 150 000 tonnes of coal to 300 000 tonnes upon the delivery of new equipment from
"We are close to securing working capital to procure spares for the existing equipment."
Hwange has finalised the acquisition of loading and drilling equipment worth
Acquisition of additional equipment has also been finalised with BELAZ of
The equipment, worth
Hwange, which produces a diversified range of coal products, is currently producing power and industrial coal after it shut down its coke oven processing plant last month due to high running costs. Mr Makore said the company was looking at options to rebuild the plant.
"At the moment, we have engaged a mining company that is producing coke for us under toll arrangement."
Hwange's production was severely constrained due to subdued capacity due to shortage working capital.
The company also came under increased competition from other new mining firms and this has eaten into its market share.
Makomo Resources is now the major supplier of coal to
The diminishing capacity of the industry has also reduced demand for industrial coal as most companies which uses coal fired boilers have significantly scaled down while other have closed.
Addressing middle managers and worker representatives recently, Mr Makore said his main priority was to come up with a salary payment plan that will be effected in the third quarter.
"However, all this hinges on securing working capital that is planned to procure new spares and equipment so that production volumes are increased significantly.
"This will enable us to come up with a sustainable payment plan as we seek to restore the company's viability and this calls for collective effort from top to bottom," said Mr Makore.
The working capital will be channelled towards repair of opencast, underground and coal processing equipment.
Some of the strategic issues which he said needed to be tackled included balance sheet restructuring, management of liabilities, growth of domestic market share, penetration of offshore markets and employee performance management through the balanced score card system.
Engagements with Government for additional coal concessions through the relevant ministry will also be intensified and prioritised as the company continues to turn around its fortunes.
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