Hwange Colliery targets 15 million tonnes of annual capacity as coke production and beneficiation take centre stage
Zimbabwe’s coal and coke sector generated US$194.3 million in export earnings during the first nine months of 2026, with September sales rising 38% above the monthly average, as producers pursue higher output and value addition amid persistent market and logistical constraints, Mining Zimbabwe can report.
By Rudairo Mapuranga
The earnings figure appears to be below the pace recorded for coal-related products in 2025, although the September improvement points to stronger performance towards the end of the period.
The figures highlight the challenge facing Zimbabwe’s coal industry: translating its resource base and expanding production capacity into sustained export growth, while supplying domestic power generation and industrial consumers.
At the centre of this drive is Hwange Colliery Company Limited (HCCL), which says it has the capacity to produce up to 15 million tonnes of coal annually. However, the company expects actual production to reach approximately seven million tonnes in the current financial year before rising to 10 million tonnes the following year.
HCCL administrator Munashe Shava said the company had addressed major constraints on the extraction side, with markets and logistics now presenting the principal challenges.
“Our biggest focus, as we speak, is actually markets and logistics. That’s where the bottleneck is,” Shava said.
The difference between HCCL’s stated capacity and projected production illustrates why higher extraction potential does not automatically translate into increased sales. The company must secure sufficient demand and reliable transport to move additional volumes to domestic and regional customers.
Coke production opens higher-value markets
A key development in the sector is HCCL’s resumption of metallurgical coke production in July 2026, following an US$8 million rehabilitation of its coke oven battery, which had been dormant since 2014.
The restart, after 12 years without production at the facility, marks a shift towards processing coking coal into a higher-value industrial product rather than relying exclusively on raw coal sales.
Coke is an important input in metallurgical operations, including steelmaking, and offers Zimbabwe an opportunity to deepen local mineral beneficiation.
“The commissioning of the coke oven battery has been an exciting journey for Hwange Colliery,” Shava said.
“Instead of simply supplying raw coking coal, we are now producing coke, allowing us to participate in a higher-value segment of the market with greater revenue-generating potential.”
Washed coking coal sells for approximately US$65 to US$70 per tonne, while processed coke commands between US$180 and US$200 per tonne, according to figures cited in the project update.
The price difference illustrates the potential value of processing, although the higher selling price does not equate directly to additional profit. Processing costs, product yields, energy requirements and market conditions will determine the financial returns.
HCCL expects the facility to reach full capacity by December 2026, with planned production of 600 tonnes of coke per day, equivalent to approximately 18,000 tonnes a month.
The company is also exploring opportunities to commercialise by-products from the coking process, including coal tar, oils and gases. Proposed downstream applications include coal tar pitch, carbon black for industrial use and gas recovery for power generation.
HCCL has further outlined plans to construct four additional coke oven batteries over the next five years, supported by increased coal output.
If implemented, the expansion could strengthen the company’s position in processed coal products and create additional opportunities to supply regional industrial markets.
Government seeks to unlock coal resources
The government is seeking to attract investment into the coal industry by elevating the status of metallurgical coal within its mineral policy framework.
Mines and Mining Development Minister Polite Kambamura announced plans to classify metallurgical coal as a “special critical mineral”, arguing that the measure would help unlock investment and support industrial development.
“Metallurgical coal will be classified as a special critical mineral to attract investment into the coal sector,” Kambamura said.
The government has also warned that dormant coal concessions could be reclaimed where holders have failed to develop their assets.
“Those that are sitting on coal assets for many years, unfortunately, government is going to take back those coal concessions,” he said.
The proposed policy shift could create opportunities for investors prepared to develop coal deposits and downstream processing facilities. Its impact will depend on the final regulatory framework, the treatment of existing mining rights and the predictability of licensing decisions.
For existing producers, the priority will be ensuring that policy changes support investment while maintaining a commercially viable operating environment.
Export performance and domestic demand
Coal’s export contribution must be considered alongside its importance to Zimbabwe’s domestic economy.
The mineral supplies fuel for Hwange Power Station and provides heat for industrial processes, while coke supports metallurgical operations, including ferrochrome and steel production.
This domestic demand gives coal producers an important market beyond exports. However, it also means that rising production does not necessarily translate into a corresponding increase in foreign currency receipts.
The reported US$194.3 million earned from coal and coke during January to September 2026 provides a measure of the sector’s contribution, but a precise assessment of its performance against 2025 requires comparable figures covering the same period and product categories.
Similarly, September sales rising 38% above the monthly average indicate an improvement against that benchmark, but do not establish whether exports increased year on year.
Raw coal, coke and semi-coke also need to be distinguished when assessing export performance, as differences in product composition and selling prices can affect the value of shipments.
HCCL has identified South Africa, Zambia and the Democratic Republic of Congo among its target markets as it seeks to expand sales.
The ability to convert additional production into export growth will depend on the availability of buyers, competitive pricing, product specifications and transport costs.
Taxes raise concerns over beneficiation
The sector is also facing questions over the impact of additional fiscal charges on production and processing.
A 3% levy on coal sales and exports took effect on 1 January 2026 under the Finance Act No. 7 of 2025, according to the legislation cited in industry discussions.
The Coke Manufacturers Association of Zimbabwe has reportedly petitioned the Ministry of Finance, seeking the removal or reduction of the levy and warning that it could undermine the viability of coke production and conflict with the government’s beneficiation objectives.
The industry has also raised concerns about a 2% corporate social responsibility levy on the gross value of coal. The precise scope and interaction of the two charges are important in determining their combined effect on producers.
For companies investing in processing facilities, the financial calculation extends beyond the selling price of the final product. Capital expenditure, electricity, labour, transport and taxes all influence whether beneficiation projects generate acceptable returns.
A predictable fiscal framework will therefore be important if Zimbabwe wants to attract investment into additional coke ovens and other coal-based industries.
Coal’s role in energy security
Beyond direct export earnings, coal remains central to Zimbabwe’s electricity supply and industrial development.
Hwange Power Station’s Units 7 and 8 added a combined 670 megawatts of installed generation capacity, strengthening the country’s domestic power-generation base.
Zimbabwe Power Company acting managing director Engineer Fannie Mavhondo has argued that the country’s coal resources can sustain electricity generation for many decades.
“Our view at ZPC is that the resource is affordable. Our numbers show that we believe over 200 years of mining are still with us in terms of the availability of the resource,” Mavhondo said.
A US$450 million rehabilitation agreement with Jindal Steel and Power has also been announced for Hwange Power Station’s ageing Units 1 to 6, with the programme expected to restore approximately 400 megawatts of generation capacity within 48 months.
The implementation of the rehabilitation programme will be important for energy-intensive industries, including mining and mineral processing, where reliable electricity supply directly affects operating costs and production continuity.
However, coal development also presents environmental and climate considerations that could influence future financing and market access. Zimbabwe’s challenge is to balance energy security and industrialisation with environmental obligations and the changing economics of energy production.
Coal-to-fertiliser projects broaden opportunities
Zimbabwe is also pursuing coal-based chemical production as part of efforts to reduce dependence on imported fertilisers.
Proposed investments include a coal-to-chemicals complex in Chegutu by Broxmen Industrial Park, with an announced investment commitment of at least US$500 million, and a separate project under Xintai in the Palm River area, reportedly valued at approximately US$200 million.
The projects are intended to use coal as feedstock for products including ammonia, urea and ammonium nitrate.
If implemented, they could expand coal demand beyond electricity generation and metallurgy, creating additional markets in agriculture and industrial manufacturing.
However, their contribution will depend on financing, construction progress, production capacity and commissioning schedules. Announced investment commitments should not be treated as evidence that facilities are already operational.
The government’s ambition to eliminate fertiliser imports within three years will depend on whether domestic production can come on stream in time and supply agricultural users at competitive prices.
Rail infrastructure remains a constraint
Transport infrastructure is another major factor determining whether Zimbabwe can expand coal exports.
Coal and coke are bulk commodities, making rail transport important for moving large volumes efficiently and controlling delivery costs.
The government has called on mining companies in Hwange and the broader north-western region to support the rehabilitation of the Victoria Falls–Bulawayo railway line.
The National Railways of Zimbabwe has also outlined an ambition to increase annual freight volumes to six million tonnes by 2030.
Improved rail capacity could reduce dependence on road haulage and strengthen the competitiveness of coal and coke shipments to regional markets. However, the benefits will depend on the rehabilitation work undertaken, the availability of locomotives and wagons, and the reliability and cost of rail services.
For HCCL, addressing logistics will be as important as increasing extraction capacity. Without sufficient transport infrastructure and reliable buyers, additional output could fail to generate the expected commercial returns.
Zimbabwe’s coal industry is pursuing a broader industrial role, with expanding production capacity, renewed coke manufacturing and proposed coal-to-chemicals investments creating opportunities for growth.
The US$194.3 million earned from coal and coke during the first nine months of 2026 provides a starting point for assessing the sector’s export contribution, while the September improvement offers a reason to examine the latest trading performance more closely.
However, the sector’s long-term prospects will depend on whether increased production translates into sustained sales and stronger returns.
HCCL’s stated capacity of 15 million tonnes annually provides room for expansion, but projected output remains below that level. Coke production offers a route into higher-value markets, although its success will depend on production costs, market demand and the ability to deliver products competitively.
Investment in railway infrastructure, a predictable fiscal framework and the successful implementation of beneficiation projects will be central to the next stage of the industry’s development.
For Zimbabwe, coal’s strategic value extends beyond export earnings. It supports electricity generation, metallurgical processing and the proposed development of coal-based industrial chemicals.
The key test is whether the country can convert its substantial coal resources and expanding production capacity into commercially sustainable industrial growth.
