Hwange Colliery Company Limited coal production last year fell 17 percent from 2,071,526 tonnes to 1,722,801 tonnes.
HCCL, the country’s largest coal miner attributed the decline to frequent breakdowns and the loss of critical skilled staff.
The company said that the demand for coke and coal products in the market was firm in the first three-quarters of the year but decreased significantly in the fourth quarter as the global economic crisis began to unfold.
It said that by the end of the year, most of the local and export customers in the mining, ferrochrome and manufacturing industries had scaled down their operations and some even closed.
"The demand in the export markets was also low in the last quarter of the year.
"The decline in the commodity price on the international markets led to the decrease in the prices of coal and coke," said the colliery.
The production tonnage was lower than the previous year because of the envisaged recapitalisation of the business was not achieved. The sources of coal for the period under review were JKL and Chaba opencast, and three main underground mine.
Since there was no major equipment purchases during the year, the existing aged plant and equipment had frequent breakdowns that constrained the company’s operations.
Hwange coking coal and Hwange industrial coal sales amounted 494 990 tonnes and were slightly below the tonnage of 541 357 tonnes achieved in the prior year.
A total of 147 228 tonnes of coal fine were sold during the year locally and to export market. The company added that deliveries of coal to Zimbabwe Power company ‘s Hwange Power station amounted to 1 073 602 tonnes compared to 1 315 799 tonnes delivered for the same period last year.
There were no coke oven gas supplies during the year because of the major breakdown on the gas pipe.
Coke sales including breeze, accounted for 154 529 tonnes of which 70 percent was exported. A tonnage of 213 370 tonnes was sold the previous year.
On its general outlook, the company said that procurement of mining equipment and refurbishment of major machinery will be priority during 2009 and this is expected to restore.
Source: The Herald, Zimbabwe
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