Hwange signs 25-year coal supply deals - Bulawayo24 News
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Hwange signs 25-year coal supply deals by Staf reporter
 20 Apr 2017 at 06:48hrs |  Views
http://bulawayo24.com/index-id-business-sc-companies-byo-108668.html[21/04/2017 12:20:54 PM]
Hwange signs 25-year coal supply deals - Bulawayo24 News
HWANGE Colliery Company Ltd has signed of-take agreements with two thermal power sations, which will
see it supplying the frms with 400 000 tonnes of coal per month. The 25-year coal supply deals will see
Hwange supplying more than 200 000 tonnes of coal per month each to the Zimbabwe Power Company and
Lisulu Power, an independent power producer in the Matabeleland North Province, MD Mr Thomas Makore
said.
He gave no further details on the of-take agreements but indicated the deals would underpin Hwange's
turnaround programme, which the company has jus embarked on.
"We have already entered into a 25-year coal supply agreement with the two companies and we are in the
process of fnalising the contracts," said Mr Makore. Zesa Holdings, the parent company of ZPC is working on
expanding Hwange Thermal power plant, which will add 600 megawatts of electricity onto the national grid.
Mos of the conditions for the release of the $1,2 billion loan for the project from a Chinese bank have been
met and the process is now being handled by the Minisry of Finance for the fnalisation of the Implementation
Agreement, Zesa said recently.
In 2015, Government granted Hwange three new concessions in wesern area, Lubimbi eas and wes
following concerns that HCCL's present concessions were running out.
The new concessions, with an esimated underground resource of about one billion tonnes, according to an
independent competence report done by SRK Consulting, is expected to increase the life span of the coal
mining company by more than 50 years.
The company is in the process of engaging a contractor to do exploration, Mr Makore said recently.
Next week, Hwange will be seeking to enter into sructured payment plans with its creditors in a bid to sop
litigations agains the company and allow it to reconsruct.
The ZSE-lised company owes various creditors in excess of $180 million. A positive outcome of the meeting
will enable the company to raise funds for working capital requirements.
The company is looking at ramping up production at its open cas operations to 100 000 tonnes per month
and re-open the underground mine by Q3, with production target of 50 000 tonnes.
Hwange is also seadily increasing output after Mota-Engil resumed operations las month.
Mota-Engil signed a fve-year contract worth $260 million with Hwange in 2014 and was producing 200 000
tonnes of coal per month before it sopped in June las year over non-payment.
http://bulawayo24.com/index-id-business-sc-companies-byo-108668.html[21/04/2017 12:20:54 PM]