Hwange Colliery Company Limited (HCCL), a government-owned coal producer, is set to capitalize on rising global coal prices by continuing its underground mining operations. Initially, HCCL had planned to halt these operations in June 2024 to reduce the risk of spontaneous combustion due to excess coal stockpiles. However, the company has reversed this decision, opening a new underground mine to take advantage of the market’s favorable conditions.
Despite being under administration and suspended from trading on the Zimbabwe Stock Exchange due to technical insolvency, HCCL has shown a significant improvement in performance. In the third quarter of 2023, the company produced nearly one million tonnes of coal, almost doubling sales compared to the same period in 2022.
This surge in production and sales, driven by new machinery acquired in early 2023, contributed to a 163% increase in sales over the first nine months of 2023. The mining division, which accounted for 96% of the company’s US$10.2 million unaudited profit before tax, remains the core of HCCL’s operations.
