Hwange pays $2.2m deposit for heavy duty equipment from China

Hwange Colliery Company Limited has paid deposit of $2.2 million from internal resources to Sany Heavy Equipment Corporation of China for the supply of heavy duty mining equipment which is expected to be commissioned at the end of July 2013, acting MD Stanford Ndlovu told the AGM today.

Ndlovu said a total of 13 pieces of heavy duty mining equipment is currently being shipped from China and will be commissioned at the mine at the end of July 2013.

"At the last AGM, it was reported that the company had floated an international tender for the supply of mining equipment on credit and that response was satisfactory especially by Asian companies with the only challenges being the 30% deposits precondition to the lines of credit.

"A deposit of $2.2 million has been paid from internal resources to Sany Heavy Equipment Corporation of the People's Republic of China," Ndlovu told the AGM.

The company, Ndlovu said, is also acquiring drilling equipment worth $5 million from another overseas supplier while procurement of additional mining equipment from China North Industries Corporation and XCMG totaling $22 million is being executed and delivery expected before end of the year.

Ndlovu said Hwange's recapitalisation strategy would change the company's fortunes.