AILING Hwange Colliery Company Limited says it is implementing a new business model to turnaround its operations as well as clearing legacy debts.
HCCL plunged deeper into a loss of $78,4 million for the year ended December 31, 2018 from a $43,8 million loss posted in the prior comparable period and owes millions of dollars to different credits.
The company’s administrator, Bekithemba Moyo, revealed this in a speech read on his behalf by the assistant administrator, Mutsa Remba, during the 47th commemoration of the Kamandama Mine disaster yesterday.
Moyo, who could not disclose the detail about the new business model, said in a bid to keep the memory of the miners who perished in the 1972 disaster, his team was committed to making sure the company continues as a going concern. He vowed that HCCL will never go down under their watch.
“As an administration team we strive to keep the memory of the deceased miners alive by ensuring that Hwange Colliery Company remains a going concern. We are implementing a new business plan and model and addressing the debts the company had in the past owed to its various creditors,” said Moyo.
“It has not been an easy road but the staff has shown to us that it indeed can be done, the operations are slowly improving and as a testament to this, salaries are now coming to our employees on time every month. With our administration plan, we are confident that the company will not go into liquidation.”
He said their focus now was to produce and sell more coal and its related products to also cushion the workforce from the prevailing macro-economic challenges facing the country. Moyo also paid tribute to Government for continued support.
“The turnaround of Hwange Colliery Company is imminent. All hands are on deck to ensure we are poised to continue on the path to positive company performance,” he said.
“The company is a strategic national entity. We continue to do our part to supply Zimbabwe Power Company coal requirements for electricity generation. We recognise this national contribution to the economy by providing the energy behind industry revival.”
Government placed Hwange Colliery Company Limited under administration late last year to allow it to recover and potentially return to profitability. The reconstruction order was made in terms of Section 4 of the Reconstruction of State-Indebted Insolvent Companies Act (Chapter 24: 27) (No. 27 of 2004). Companies going through reconstruction shall be under the control and management of the administrator, and boards of such companies shall be divested of the control and management of the companies’ affairs.