Hwange Colliery doubles coal output, enjoys increased demand from new power units

Hwange Colliery has doubled coal production, benefitting from new mining equipment and increased demand from the two new thermal power units.

The company reports that coal production in the three months to September increased after it invested in new assets for its mines.

“The company’s performance during this quarter was fairly better as both production of 989 503 tonnes and sales of 911 245 tonnes were almost double from last year’s performance, mainly due to efficient and effective machinery which was acquired during the first quarter of 2023,” Hwange says.

The biggest buyer was Hwange Power Station, which accounted for 48% of sales. The power stations two new units, Units7 and 8, were commissioned last year, increasing demand for coal. During the same quarter in 2022, Hwange sold 388,487 tonnes of coal, with the power station accounting for just 7% of sales.

“For the nine months to 30 September 2023, the company realised 2,795,303 tonnes (2022:1,060, 976 tonnes) in sales,” says the colliery.

The company made an unaudited profit of US$10.2 million in the September quarter, despite a fall in coal prices. The company plans to suspend new underground production so that it can sell its stockpiles.

“The company aims to stop underground mine production for the next 6 months to stop losing mined coal through spontaneous combustion as production is way more than sales. The quantity of mined coal is deemed sufficient to meet the operating needs of the company.”

Hwange has been under an administrator since 2018, after debts threatened the business. In 2022, Hwange began buying new equipment to replaced aged assets. The company acquired new equipment from Barzem, a unit of Zimplow, for its Chaba Coal Mine.