The Sunday News
Business Reporter
OFFICIALS from Portuguese conglomerate Mota-Engil contracted by Hwange Colliery Company Limited (HCCL) to offer mining services have started preparations to begin coal extraction at the coal mining giant’s Chaba open cast. HCCL corporate affairs advisor Mr Burzil Dube said a delegation of mining experts from Mota-Engil arrived in the country two weeks ago and had already started preparatory work.
“At the moment they are in the process of mobilising equipment and also involved in the process of recruitment since they will employ part of our workforce.
“Their team has also set up explosive support facilities as well as their accommodation, with a camp already established near the site,” Mr Dube said.
The Portuguese secured a mining contract with HCCL worth $260 million at the beginning of the year. The five-year contract includes drilling works, detonation, load and transportation of coal at the Colliery’s Chaba opencast mine.
Mr Dube said Mota-Engil’s mining equipment was expected in the country this week.
“We are expecting the machinery to start arriving next week (this week). The machinery comprises heavy equipment and will be coming gradually and will take about two weeks to put together but we expect mining to effectively start in May,” he said.
Through its contract mining deal with Mota-Engil and its massive recapitalisation process which saw it investing in massive equipment over the last two years, HCCL has projected to triple its output this year.
HCCL has set a target to increase its monthly coal output from 150 000 tonnes, which was being achieved last year to more than 450 000 tonnes in the process realising a turnover of about $17 million a month.
Through its own coal-mining activities, HCCL is targeting to produce 250 000 tonnes to 300 000 tonnes with the rest being delivered by Mota-Engil.
HCCL’s capacity utilisation has over the years been crippled by failure to obtain capital injection to purchase new equipment to replace its archaic fleet.
The Mota-Engil deal is expected to breathe life into the struggling HCCL, which owes its workers over $14 million and has a debt of $160 million.
