eBusiness Weekly
Business Writer
Hwange Colliery Company Ltd has signed a contract with Fugro, the world’s leading independent geo-intelligence provider to explore its new western areas coal concessions
In 2015, the Government granted Hwange, the country’s oldest coal mining company new coal concessions in Lubimbi and the western areas to lengthen its life span.
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.
Fugro was among few international companies that last year bid for the exploration contract.
“We have signed the contract and we are now fulfilling conditions precedent to implement the contract,” managing director Thomas Makore told Business Weekly.
The exploration programme would be done in three phases; the first being exploration, drilling and compiling a resource statement and is expected to be completed in 12 months. The second phase would involve determining mining methods.
Makore said the company would start looking for potential investors to develop the new mines.
“It is something that we will start looking at during the first or second quarter of next year,” he said.
He also said the company has deferred the re-opening of its underground mining after failing to secure $1,5 million for working capital. This has resulted in the company significantly losing its market share to Mokomo Resources.
During the six months to June this year, the company reported a 23 percent drop in revenue to $18,8 million from $24,5 million last year weighed down by weak sales due to low production.
Between January and April monthly production averaged 42 000 against a target of 175 400 tonnes.
