Hwange to sell coal to South Africa

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Hwange Colliery plans to export 50 000 metric tonnes of coal to neighbouring South Africa this year and its gauging interest from buyers in Europe and Asia, the head of the company said.
(File Photo): Hwange Colliery
(File Photo): Hwange Colliery

Hwange Colliery plans to export 50 000 metric tonnes of coal to neighbouring South Africa this year and its gauging interest from buyers in Europe and Asia, the head of the company said.

“We are looking at Eskom, but the problem is the issue of price and logistics in terms of how to transport the coal,” managing director Thomas Makore said on Thursday in an interview.

Eskom Holdings is South Africa’s state-owned power utility.

 Thomas Makore
Thomas Makore

“We are targeting Eskom, steel and the chrome industries in South Africa,” said Makore. “There is also interest from a number of countries in Europe; there is Turkey, Germany and there is also India.”

The company plans to mine 500 000 tonnes of coal, of which about 200 000 tonnes will be produced by Mota Engil Ltd of Portugal.

In March, Hwange Colliery signed a contract to supply 9 000 tonnes of coke to Glencore PLC.

The company is also taking steps to move into coal liquids, diesel and ammonium nitrate.

“Our production for this year is better than 2014, our sales are better than 2014,” said Makore.

— Bloomberg