Coal miner Hwange signs 25-year deals

HARARE - Zimbabwe's largest coal miner, Hwange Colliery Company Limited (Hwange), has signed two 25-year coal supply agreements with two local companies.

The initiatives will see the company supplying more than 400 000 tonnes of coal per month to State-owned Zimbabwe Power Company and independent electricity producer Lusulu power.

Hwange managing director Thomas Makore yesterday said the new deals were part of the company’s turnaround strategy.

“We have already entered into a 25-year coal supply agreement with the two companies and we are in the process of finalising contracts,” he said.

In 2015, the government granted the company three new concessions in Western area, Lubimbi East and West following concerns that Hwange’s present concessions were running out.

The listed coal producer’s medium-term strategic plans also include the replacement of its coke oven battery which will also supply coke oven gas as fuel substitute for diesel to Hwange Power Station as well as supply of tar and benzole products to Zimchem.

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