HARARE — Coal miner Hwange Colliery Company has more than doubled its half-year loss to $7,9 million compared to the same period last year on declining revenues, but sees improved performance going forward, driven by the acquisition of new concessions and capital equipment.
Sales revenue for the six months plunged to $33 million compared to the $40 million recorded last year while expenses were lowered.
“In the short term, the company plans to acquire additional concessions that will make available additional coal reserves. The focus now is on securing the Western Areas concession, which is critical and strategic to the future growth plans of the business,” chairman Farai Mutamangira said in a statement accompanying the financials.
He said the company had secured a $6 million working capital facility structured through a prepayment arrangement with one of the major customers.
“As previously reported, the company finalised a $18,2 million facility with PTA Bank for the importation of mining equipment from Eastern Europe. Delivery and commissioning of the equipment is expected to be completed by October 31 2014,” he said.
“The acquisition of additional mining equipment worth $15 million through a line of credit from the Export and Import Bank of India is in progress and delivery and commissioning is expected by November 30 2014.”
During the period under review, the company sold a total of 764 813 tonnes compared to 913 440 tonnes sold during the same period last year. Finance costs were flat on $1 million.
Coke volumes decreased owing to low production of the aged coke oven, Mutamangira said. He said the company was considering refurbishing the old oven or replacing it altogether, a decision which would be made by year end.
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