Connect with us

Uncategorized

Hwange Colliery suffers interim $3.97b loss on back of foreign legacy debt

Published

on

BY DONNA SLATER

Despite a 52 percent increase in production and a 74 percent increase in sales for the six months to June 30, Johannesburg Stock Exchange, Zimbabwe Stock Exchange and London Stock Echange listed Zimbabwe-based coal miner Hwange Colliery made a $3.97-billion loss in local currency in inflation-adjusted terms in the period – a 356 percent increase year-on-year.

Advertisement

For the six months to June 30, 2021, the miner made a loss of $870 715.

The net loss is a result of an $8billion exchange loss on foreign legacy debts during the period under review.

The company’s gross profit increased by 74 percent year-on-year to $4.54-billion in inflation-adjusted terms, largely as a result of a combination of an increase in sales volume and regular product price adjustments in line with market value.

Advertisement

Revenue in the period totalled $16.49-million, up 87 percent from the $8.83-million of the interim period of the 2021 financial year.

Basic earnings a share totalled $7.20, while basic headline earnings a share totalled $7.30.

Hwange Colliery was placed under administration by a reconstruction order made by Justice, Legal and Parliamentary Affairs minister Ziyambi Ziyambi in terms of the reconstruction of State-Indebted Companies Act on or about October 26, 2018.

Advertisement

The reasons for this include gross losses, persistent losses over a long period, negative cash flow, obsolete and antiquated plant and equipment, technical insolvency with liabilities significantly exceeding assets, non-payment of creditors as they fell due, and non-payment of employees over a long period of time.

Total coal mined by opencast operations amounted to 1.29-million tonnes – a 55.59 percent increase in production year-on-year.

The steady production is mainly attributed to the successful contract mining model the company has employed.

Advertisement

A total of 676 387 tonnes of coal was produced for Hwange Power Station and Zimbabwe Zhongxin Electrical Energy for electricity generation during the course of the period – a 124 percent increase year-on-year.

Deliveries into the power station were, however, negatively affected by limited stock holding space in the power station.

In terms of underground mining production, Hwange produced 19.49 percent less year-on-year, mainly owing to ageing underground mining equipment.

Advertisement

In this regard, the miner’s strategic plan is to have two new continuous miners within the next 18 months, resulting in the company’s underground mine reaching its nameplate production capacity.

The first continuous miner is expected to be commissioned before the end of this year.

Looking ahead, Hwange Colliery expects global coal prices to continue to rise amid the ongoing Russia-Ukraine conflict, and the company intends to position itself to benefit from the increase in global demand for fossil energy.

Advertisement

In this regard, Hwange Colliery will focus on coal beneficiation and improving the quality of its coal.

In this vein, the company is set to receive a washing plant that will be located near mining areas. This equipment will be commissioned during the first quarter of 2023.

The company has plans to build a coke battery by 2025. – Mining Weekly

Advertisement

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Slider

Three painted dogs killed along Hwange highway as conservationists raise alarm

Published

on

BY NOKUTHABA DLAMINI

Conservationists have raised fresh concern over wildlife safety along the busy Bulawayo–Victoria Falls highway after three endangered African wild dog were killed in separate incidents within a week.

Advertisement

In a statement, Painted Dog Conservation confirmed that two pups from the Umkhonto pack were struck and killed by a vehicle overnight within the Hwange landscape.

“We are heartbroken to share that two pups from the Umkhonto pack were killed overnight after being struck by a vehicle along the Bulawayo–Victoria Falls road,” the organisation said on Saturday.

The group said the pack had been safely escorted across a nearby road earlier, but is believed to have been disturbed by lions during the night, forcing them to move again toward the highway where the accident occurred.

Advertisement

“Despite constant monitoring and intervention, moments like this remind us how fragile their survival can be,” the organisation added.

The deaths bring to three the number of painted dogs killed along the same highway corridor in less than a week, with another animal reportedly struck closer to Victoria Falls.

Conservationists warned that the loss goes beyond individual animals, highlighting the species’ already fragile population.

Advertisement

“It’s not ‘just three dogs’. These three could have become alphas and been responsible for producing over 300 dogs through their offspring and subsequent generations,” the statement read.

Highway poses growing threat to wildlife

The Bulawayo–Victoria Falls road, which cuts through key wildlife areas including parts of Hwange National Park, has long been flagged as a danger zone for animals.

Advertisement

The highway is a major tourism and freight route linking Bulawayo to Victoria Falls, carrying heavy traffic volumes that include haulage trucks, buses, and self-drive tourists—many travelling at high speeds, particularly at night.

Wildlife frequently crosses this corridor as it bisects natural habitats and migration routes, bringing animals such as elephants, lions and painted dogs into direct conflict with vehicles.

Conservation groups have repeatedly called for stricter enforcement of speed limits, improved signage, and traffic calming measures in wildlife zones, especially at night when visibility is poor and animal movement increases.

Advertisement

Calls for action

Painted Dog Conservation urged motorists to slow down and remain vigilant when driving through wildlife areas.

“We urge all road users to slow down—especially at night—and call on authorities to strengthen and enforce speed reduction measures in wildlife areas. Their survival depends on it.”

Advertisement

The deaths come amid growing concern over human-wildlife conflict in Matabeleland North, where expanding infrastructure and traffic volumes continue to put pressure on endangered species.

Advertisement
Continue Reading

In the community

Hwange residents invited to constitutional amendment public hearing

Published

on

BY NOKUTHABA DLAMINI 

Residents in Hwange are set to have their say on proposed changes to the country’s supreme law as the Parliament of Zimbabwe rolls out public hearings on the Constitution of Zimbabwe Amendment No. 3 Bill.

Advertisement

The outreach programme will reach the coal-mining town on Tuesday, 31 March, with the hearing scheduled for 10am at Edmund Davies Hall, located at the No.1 Colliery Club near Thomas Coulter Primary School.

Attendance is free, and members of the public are being encouraged to participate and express their views on the proposed amendment.

According to Parliament, the hearings are part of a nationwide consultation process aimed at gathering citizens’ input before the bill is finalised. The proposed legislation—Constitution of Zimbabwe Amendment No. 3 Bill (H.B. 1, 2026)—seeks to introduce changes to key governance provisions.

Advertisement

The Matabeleland North outreach will begin in Tsholotsho on Monday, 30 March, before moving to Hwange, then to Binga on Wednesday, 1 April, and concluding in Lupane on Thursday, 2 April.

Parliament has also opened channels for written submissions, which can be sent to the Clerk of Parliament or via email.

However, authorities have warned that individuals wearing military uniforms, political party regalia, or carrying flags and badges will not be allowed into the hearings.

Advertisement

Residents in and around Hwange are urged to attend in numbers and make their voices heard.

Advertisement
Continue Reading

In the community

EMA, Lupane State University step up fight against deadly Umkhawuzane in Mat North

Published

on

BY WANDILE TSHUMA

The Environmental Management Agency (EMA), in partnership with Lupane State University, has launched a community-based initiative to control and reduce the impact of the toxic plant Dichapetalum cymosum, locally known as Umkhawuzane or Gifblaar, which has caused significant livestock losses in Matabeleland North.

Advertisement

The initiative, focuses on managing the spread of the poisonous plant, which is widely recognised as one of the most dangerous threats to cattle in Southern Africa. Gifblaar is estimated to contribute to about eight percent of livestock deaths linked to toxic plants in the region. The plant contains fluoroacetate, a potent toxin that causes sudden death in animals and poses risks of secondary poisoning through the food chain.

According to EMA, the study was carried out in Ward 18 (Makhovula) in Lupane District and Ward 10 in Umguza District. It combined community sensitisation with mechanical and chemical control trials aimed at identifying effective ways to eradicate the plant.

Community engagements revealed a high level of awareness among farmers about the toxicity of Umkhawuzane. Farmers reported losing an average of three to four animals per household during the winter season, when forage is scarce and the plant remains green, increasing the risk of livestock consumption.

Advertisement

Results from the trials showed that mechanical removal of the plant produced promising outcomes. No regeneration was observed in areas where roots were excavated to depths of between one and 1.5 metres. However, chemical control using glyphosate only led to temporary suppression of the plant and did not achieve complete eradication, while also affecting surrounding vegetation.

EMA said the findings highlight the need for integrated and site-specific management approaches. These include effective mechanical removal, cautious use of chemicals, and continuous community education to prevent further losses.

The agency, together with Lupane State University, reaffirmed its commitment to working closely with local communities to protect livestock, improve rangeland management and reduce the economic losses caused by Umkhawuzane in Matabeleland North.

Advertisement

Continue Reading

Trending

Copyright © 2022 VicFallsLive. All rights reserved, powered by Advantage