28 March 2013 – Hwange Colliery Company has invested more than US$19 million into its operations in a bid to double production, according to the Zimbabwe Mail.
Production of coal currently stands at 450,000 tonnes a month, which represents about 55% of the colliery’s total capacity. New equipment is expected to be delivered within the next three months and this should increase coal output.
Hwange colliery, which has capacity to produce five million tonnes of coal per year, has been operating below capacity due to obsolete machinery, among other challenges. The entity, which requires more than US$90 million to fully capitalise its operations, has for the last two years been negotiating with the Development Bank of Southern African for a loan facility.
The full recovery of Hwange is expected to help improve electricity supply in Zimbabwe, which has sometimes been interrupted due to the shortage of the coal.