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HCCL to increase coal production by 29.3%

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World Coal,


Hwange Colliery Company Limited (HCCL) is reportedly intending to begin producing over 300 000 t/month of different graded coal by the end of June.

This shows an increase in coal production by 29.3%. The colliery’s output was 232 000 t in 1Q18, compared to 105 000 t at the same time last year.

Edward Tome, HCCL Board Member, stated: “Zesa shall remain a priority for us, while also making sure the profitability and production of coal and coking for the industry and for the export market will remain available for the profitability of the company to meet its obligation for the scheme and its monthly operating expenses.”

He continued, explaining: “Coal production is on the increase, with expectations high that by the end of June 2018. The company will start producing more than 300 000 t of coal of various grades per month. […] We envision HCC as a profit making, re-energised giant and a force to reckon with in the region.”

In May 2017, HCCL entered into a Scheme of Arrangement with its creditors, as a means of extinguishing its debt of US$352 million without hindering operations.

Since agreement, the company has followed the Scheme of Arrangement, particularly on employee salaries.

Scheme of Arrangement Chairman Andy Lawson summarised the company’s intentions: “This quarter the company’s production plans are as follows: opencast mining production to reach 300 000 t/month by June 2018; take delivery of the remaining underground mining equipment so that full production is reached in July 2018.”

Recently, the company received a boost to its struggling recapitalisation and turnaround efforts. This followed on after its procurement of underground mining equipment, including additional shuttle cars, a transformer, a roof bolter, and more.

Read the article online at: https://www.worldcoal.com/mining/07062018/hccl-to-increase-coal-production-by-293/

 

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