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 *

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

National

Zimbabwe fast-tracks approval of long-acting HIV prevention drug Lenacapavir

Published

on

BY WANDILE TSHUMA

Zimbabwe has taken a major step in the fight against HIV following the rapid approval of Lenacapavir, a groundbreaking long-acting injectable for HIV pre-exposure prophylaxis (PrEP). The Medicines Control Authority of Zimbabwe (MCAZ) authorised the drug in just 23 days, marking one of the fastest regulatory approvals in the country’s history.

Advertisement

The application, submitted by pharmaceutical company Gilead Sciences in October, underwent an expedited review because of its public health importance. MCAZ says the fast-tracked process did not compromise scientific scrutiny, with the product subjected to a rigorous assessment of its safety, efficacy and quality.

Lenacapavir is designed for adults and adolescents weighing at least 35kg who are HIV-negative but at substantial risk of infection. Unlike traditional daily oral PrEP, the medicine is administered as a six-monthly injection, following an initiation phase that includes one injection and oral tablets on Days 1 and 2. Health authorities say this long-acting formulation could dramatically improve adherence and expand prevention options, particularly for communities where daily pill-taking is difficult.

MCAZ Director-General  Richard T. Rukwata described the approval as a landmark moment in Zimbabwe’s HIV response.

Advertisement

“The rapid approval of Lenacapavir reflects MCAZ’s dedication to accelerating access to trusted, high-quality health products. This milestone brings new hope for HIV prevention and reinforces our commitment to safeguarding public health,” he said.

To fast-track the process, the Authority applied a regulatory reliance approach, drawing on scientific assessments from the World Health Organization’s Prequalification Programme (WHO PQ). This allowed evaluators to build on internationally recognised review processes while ensuring Zimbabwe’s own standards were met.

The introduction of Lenacapavir comes as Zimbabwe continues efforts to reduce new HIV infections, particularly among young people and key populations who face barriers to consistent PrEP use. Public health experts say the drug’s twice-yearly dosing could be a game changer in improving uptake and protection.

Advertisement

MCAZ says it remains committed to ensuring Zimbabweans have access to safe, effective and good-quality medical products, in line with its mandate under the Medicines and Allied Substances Control Act.

Advertisement
Continue Reading

Slider

ZimParks to host first-ever International Wildlife Conservation symposium

Published

on

BY NOKUTHABA DLAMINI

The Zimbabwe Parks and Wildlife Management Authority (ZimParks) will hold its inaugural International Wildlife Conservation Symposium under the theme “Wildlife Conservation and Sustainable Development.”

Advertisement

The two-day event, scheduled for October 22 to 23, next week, will take place at the Management Training Bureau in Msasa, Harare. It will bring together conservationists, researchers, policymakers, and students to discuss key issues around wildlife protection and sustainable development.

The symposium will focus on eight sub-themes, namely Wildlife Conservation and Transboundary Management, Freshwater, Fisheries and Aquatic Management, Sustainable Tourism and Socio-Economic Development, Human-Wildlife Interactions, Environmental Health and Safety, Climate Change Adaptation and Mitigation, Community-Based Natural Resource Management, and Natural Resource Policy and Governance.

ZimParks says the symposium will provide a platform to exchange ideas and deepen understanding of the link between wildlife conservation and sustainable development. Members of the public, students, and professionals are encouraged to attend.

Advertisement

 

Advertisement
Continue Reading

Trending

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