Hwange Colliery advised to trim 3,200 workforce

THE Government is looking at the possibility of shedding off some of Hwange Colliery Company Limited (HCCL)'s non-core operations including rationalisation of its workers from 3 200 to levels that are commensurate with production.

Finance and Economic Development Minister Patrick Chinamasa said this last Thursday while presenting the mid- term fiscal policy statement.

"The Government is exploring the scope for shedding off some of Hwange Colliery's non-core operations, including rationalisation of its workforce from the current 3 200 to levels that are commensurate with production," he said.

"Non-core operations at Hwange include provision of housing and other related amenities, schools and health facilities."

Last June, Mines and Mining Development Deputy Minister Fred Moyo said HCCL could trim its workforce to 2 000 as part of a new business model to contain ballooning overheads and return to profitability.

The colliery company is saddled with debts of nearly $300 million.

Minister Chinamasa said HCCL was presently producing an average of 150 000 tonnes per month, against potential capacity of about 300 000 tonnes.

"The company made a loss of $115 million in 2015 alone," he said.

Chinamasa said necessary reforms to ensure the company operates at optimum capacity were critical.