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

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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.

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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.

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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.

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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.

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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.

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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.

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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

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Nkayi

Burial preparations underway for Nkayi well tragedy victims

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BY NOKUTHABA DLAMINI 

The Nkayi community is preparing to lay to rest the Grade 2 pupil and his neighbor who tragically died in a gas-filled well in Ward 19 last week.

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According to Ward 19 Councillor Thubelihle Mabuza Ncube, the young Grade 2 boy is scheduled to be laid to rest today, while the other deceased individual will be buried tomorrow. The community is currently awaiting the arrival of the bodies from the Nkayi regional mortuary. The remains were recently delivered back to the regional mortuary following the completion of postmortem examinations in Bulawayo.

The double fatality occurred when the young student was reportedly lured into a neighbor’s well by an elder to retrieve a bucket in exchange for sweets. The child was quickly overcome by suspected carbon monoxide and a total lack of oxygen. A neighbor who entered the shaft in a desperate rescue attempt also perished after being overwhelmed by the toxic air.

Due to the hazardous conditions within the well, rescuers were unable to enter the shaft and had to use a makeshift wire tool to retrieve the bodies from the surface. Councillor Ncube previously expressed deep distress over the incident, noting that Nkayi is hurting deeply.

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While the community mourns, legal proceedings are also in motion. The councillor has indicated that the accused in the matter has been charged by the police. This update follows a series of tragic events in the Nkayi district, including a recent fatal elephant attack in Ward 13.

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Binga

ZPCS reports 104 HIV-positive inmates across Matabeleland North prisons

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BY STAFF REPORTER

A total of 104 inmates are living with HIV across eight correctional facilities in Matabeleland North, according to data from the Zimbabwe Prisons and Correctional Services.

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The figures, which were first reported by the Chronicle, were presented by ZPCS Assistant Principal Correctional Officer Godknows Ncube during a National Aids Council stakeholder meeting in Bulawayo.

Of the inmates recorded as positive, 98 are aged 25 and older, while six are under the age of 25. The affected facilities include Victoria Falls Prison, Hwange Prison, Ntabazinduna Satellite Prison, Anju Farm Prison, Tsholotsho Prison, Lupane Prison, and Binga Prison .

During the most recent quarter, 144 inmates underwent testing for HIV, resulting in one positive diagnosis .

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While correctional facilities received 900 male condoms, officials reported that no female condoms were provided. Ncube noted the need to address this gender bias and ensure that female protectors are available for inmates.

The prison service is also facing challenges with medication adherence. Ncube emphasized that there is a high number of defaulters, particularly among younger inmates who were aware of their HIV status before entering the system.

He called for the integration of HIV services with other health programs and stressed the importance of strengthening monitoring and reporting within the prisons. Currently, some facilities in the region are not yet accredited to provide antiretroviral therapy services, highlighting a need for further staff training and equipment

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Three painted dogs killed along Hwange highway as conservationists raise alarm

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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.

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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.

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“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.

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“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.

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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.

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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.”

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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.

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