eBusiness Weekly
Business Writer
Hwange Colliery Company Ltd is finalising an exploration contract with Fugro N.V., the world’s leading independent geo-intelligence provider to explore its new concessions.
Fugro N.V. is a Dutch multinational public company headquartered in Leidschendam, the Netherlands, that provides geotechnical, survey, subsea, and geoscience services, typically oil and gas, telecommunications cable, and infrastructure companies
Sources within Government — a major shareholder in Zimbabwe’s second largest coal miner, told Business Weekly that Hwange and Fugro were close to finalising the contract, which is expected to come up with resource indications on the company’s new concessions in the Lubimbi and Western areas.
“There is progress and we have been informed that the contract will be finalised by month end,” said the source who requested not to be identified because the matter is private.
In 2015, the Government granted Hwange new coal concessions in Lubimbi and the western areas.
The new concessions, with an estimated underground resource of about one billion tonnes, according to an independent competence report done by SRK Consulting, is expected to increase the life span of the coal mining company by more than 50 years.
Hwange managing director Thomas Makore declined to comment, saying the deal was still under discussion.
“What I can say is we selected a partner that we are talking with,” he said.
Hwange, the country oldest coal miner has indicated it would look at partnering foreign investors to develop new mines at the new concessions. Apart from Lubimbi and western area coalfields, Hwange has also identified deposits in the Lowveld.
The Lowveld is strategic because of its proximity to the South African market and port of Beira and Maputo in Mozambique.
Coal is the dominant energy mineral for Zimbabwe.
Over the past six months, Hwange’s performance fell short of targets due to low production levels resulting from working capital constraints.
Average monthly production was 94 216 tonnes, lower than the budgeted monthly production of 175 425 tonnes, the company said in the half year financial results. The average monthly production for the first four months was 42 000 tonnes, but production picked since May.
Total sales tonnage was 450 557 tonnes, which was 50 percent lower the target of 1,08-millon tonnes. Coal sales rose by 37,5 percent to 172 500 tonnes from 125 544 tonnes during the same period last.
Coal fines and breeze sales increased 13,7 percent to 47 749 tonne, from 41 982 tonnes in the comparative period. Coke sales volumes were down to 7 069 tonnes from 39 842 tonnes.
