Hwange Colliery revitalizes with US$50m coal mine partnership
Hwange Colliery Company Limited (HCCL) has teamed up with the Chinese firm Zhong Jiani Investment (ZJI) to launch a new underground coal mine in Hwange, Zimbabwe.
The US$50 million project is expected to produce 80,000 tonnes of coking coal monthly, with a lifespan of 25 years.
HCCL has restructured into seven independent companies, including a joint venture with ZJI. The strategic restructuring aims to boost production and streamline operations. The newly formed entities are Hwange Mining and Processing Company, Hwange Property Company, Hwange Medical Company, Hwange Zambezi Agriculture Company, Hwange Lubimbi Energy Company, Hwange Khula Fund, and the joint venture with ZJI.
Eng Munashe Shava, the administrator overseeing HCCL’s reconstruction, emphasized the importance of this venture in the company’s recovery.
“When we looked at the Hwange business model, it was saddled with a lot of value-eroding activities,” Shava said. “We meticulously formulated a strategy to eliminate these issues, transforming HCCL from a loss-making entity to a revenue-generating company.”