Hwange Colliery Company Limited (HCCL) has seen its productivity reaching 51 % after sustaining good financial performance partly attributed to the stable official exchange rates.
In an update this week, the HCCL administrator, Dale Sibanda said both productivity and profits increased significantly during the six months to June 30, 2021, despite continued reconstruction.
The coal miner was placed under reconstruction in October 2018 by the government when it almost collapsed due to overwhelming creditors litigations.
“The company’s production increased by 51 % during the period under review. The Company’s gross profit increased by 139% to $ 851, 6 million in historical terms compared to the same period last year. The stability of the official exchange rate has reduced the impact of inflation compared to same period last year,” he said
During the period under review, net loss for the period under review decreased from $ 991, 7 million to $538, 7 million in historical terms.
Coking coal sales increased by 28, 6 % with the commodity’s sales volumes remaining limited due to washing capacity constraints.
Total coal mined by Opencast operations was 806 404 tonnes, a 55, 5 % increase in production from the previous year.
During the period under review, bidders were invited to tender for the full rebuild of the company’s original coke oven battery which was shut down in mid-2014 which will see the revamping of the by-products plant, ancillary plants and for the supply of a completely new coke oven battery.
“With the Company being under reconstruction, it has been challenging to obtain both working capital and long-term financing for the business.
“It is however pleasing to note that as the Company’s performance continues to improve, funding support in the form of lines of credit to the business from local banks and regional financiers has likewise been established,” added Sibanda.