HomeCompanies and Markets31% sharp increase for Hwange Colliery Company Limited
Hwange Colliery Company

31% sharp increase for Hwange Colliery Company Limited

By Fortunate Rekai

The Hwange Colliery Company Limited (Pvt) revenue increase by 31% from ZWL 7.2 billion in 2020 to ZWL9.4 billion in 2021 this was due to the combination of an increase in sales of high vale coking coal and regular product price adjustments done during the year in line with market value as recorded in their financial trading update which ended 31 December 2021.

The company production increased by 49.5% during the period hence the sales volumes also increased by 39% compared to prior year.

“Total coal mined by Opencast operations was 1 804 663 tonnes, a 53% increase in production from the previous year,” they stated in a trading update

733, 102 tonnes of coal was delivered to Hwange Power Station during the course of the year, which was an increase of 11% from previous year.

Three main Underground Mine coal production was 27% higher than the previous year, improved operational funding drove this and credit facility availed by spares suppliers.

During the period under review, focus was on increasing production and sales of high value coking coal.

“Raw coking coal and clean coking coal sales increased by 226% from 63 294 tonnes in 2020 to 206 564 tonnes in 2021,” Engineer Sibanda said.

However, the coking coal sales volumes were limited due to the washing capacity constraints and the company redressed it by recommissioning a washing plant during the period under review.

The Hwange operations were negatively affected by the prevalence of the Covid-19 pandemic, depressed cash flows to import spares and consumables as well as the depressed market for nuts, peas and duff

The company recorded a net profit of ZWL 28.6 million during the year and the decrease was attributed to the exchange rate impact on legacy debts

The company is at advanced stage at Chaba Mine to engage a new mining contractor to increase thermal and industrial coal as this will result in increased monthly production by 40 000 towards the end of 2022

“The company aims to grow its market share of coking coal sales I neighbouring countries, as its coking coal and coke meet quality specifications in the Ferro-chrome industries and smelters,” he said.

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