Paul Nyakazeya, Group Digital Editor 
HWANGE Colliery Company (Hwange) says it plans to grow its market share of coking coal sales in neighbouring countries this year.
The coal miner, currently under administration, previously said it is increasing inroads in regional markets such as Zambia, DRC, Malawi, Mozambique, Botswana and South Africa, which is however negatively affected by poor logistics.
“Advanced plans to develop dedicated solutions for the delivery of coking coal and coke products in the region are underway,” Hwange administrator Munashe Shava said in a statement accompanying the miner’s financials for the year ended December 31, 2022.
He said as a part of efforts to increase production, the company entered into an equipment mobilisation and coal offtake agreement through which it will receive new underground mining equipment valued at US$15 million over two years.
A consignment of the equipment worth US$6 million has since been received and commissioned into operation.
The equipment mobilisation and coal offtake agreement are expected to increase underground production to 50 000 tonnes by mid-2023.
Shava said Hwange has also engaged new mining contractors to open three new opencast pits to guarantee annual production of coking coal of 772 000 tonnes per year.
“On the coal processing front, the company acquired two new washing plants that will be commissioned during the second half of 2023. The washing plants will be located near the mining areas to reduce hauling and processing costs,” he said.
“The development of the Option Area has started with the box cut and mining of a portal that will lead to the underground mine. This new mine will augment production of coking coal from the current three main underground mines. Coal production from the Option Area is scheduled for 2024.”
Hwange’s revenue improved by 139,76 percent to $77,73 billion in 2022 from $32,42 billion recorded in the prior year largely driven by an increase in sales tonnes.
The miner posted a loss of $8,6 billion for the year attributed to exchange rate impact on legacy debts, which contributed $30,7 billion of unrealised losses in inflation adjusted terms.
Coal production increased by 63 percent during the year while sales volumes increased by 45 percent compared to the prior year.
Going forward, Shava said Hwange intends to continue increasing coking coal production and sales, which will in turn increase capacity to discharge obligations to creditors as well as create a positive balance sheet in the medium term.
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