Hwange Colliery Company Limited (HCCL) which is the country’s oldest coal mining firm is considering selling the town for $300 million as part of efforts to raise funds to off-set its obligations with a number of creditors.
This includes selling part of its 5 000 employee houses to pay their salary arrears.
HCCL owes employees $70 million and the workers would be given the first priority to purchase the houses.
Board member Ntombizodwa Masuku this week announced the proposal to sell houses when she appeared before Parliamentary Portfolio Committee, where she also disclosed that the coal mine needed a capital injection of around $500 million.
Masuku said the company had an obligation to pay $1,8 million every month to workers, adding that they were up to date, and that the last payment was made on April 25.