Hwange Colliery comes up with a new recapitalisation strategy

Hwange Colliery Company Limited has come up with a new recapitalisation strategy aimed at mobilising long-term loans from developmental banks to increase production volumes, the Zbc reported on Saturday.

The recapitalisation strategy which has been approved by the colliery's board of directors is among other factors aimed at restoring production to full capacity as well as sustain coal supplies to local, regional and international markets.

Hwange Colliery Company Limited Board Chairman, Mr Farai Mutamangira told Zbc News in Harare that despite working capital challenges affecting production, a turnaround policy has been implemented to mobilise required funds.

Mr Mutamangira said: "We have come up with a new strategy and we are hopeful it will work for the company."

Government which is the majority shareholder in Hwange Colliery Company has also mandated the company to look for strategic investors towards the setting up of an exploration company to identify new coal reserves.

According to Hwange's latest annual report, the coal miner is exporting  about 7 000 tonnes a month to regional markets and stands to earn about $3 million per month from exports to India, a move market watchers  say will unlock shareholder  value  for the dual-listed coal mining firm.

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