Business / Companies
HCCL splashes $31m on second -hand equipment
06 Jul 2015 at 17:24hrs | Views
Hwange Colliery Company Limited (HCCL) is in yet another embarrassing scandal amid reports that newly commissioned $31,2 million in equipment for open cast mining is second hand.
The bulk of the equipment commissioned mid-June is faulty.
Bulawayo24 News revealed that over $250 000 was spent to hire chairs and tents from Harare.
The equipment is said to be performing below expectations as it is always down with reports of oil leaks and failure even to lift a bucket of coal, a development that has left management worried.
Information gleaned from ZBC says official bought worn out equipment as multiple problems being realised on a daily basis.
"One engineer who was part of the delegation to India from where some of the equipment was sourced, raised the red flag when the equipment arrived in the country after noticing differences with the one they had inspected in India" ZBC reported.
HCCL Managing Director, Engineer Thomas Makore admitted that there are problems with some of the machines which are leaking hydraulic oil, saying initial assessments have proved that it is a factory defects.
He said the supplier is currently attending to the problem since the equipment has a warranty and if it was second hand, it would have different problems on each machine.
The equipment was acquired from BELAZ and BEML under vendor-financed facilities.
PTA funded $18,2m purchase of equipment from BELAZ. India Exim Bank financed the purchase of equipment from BEML.
Part of the equipment included 10 dump trucks, five front-end loaders and two wheel dozers from BELAZ. BEML is set to supply HCCL with two excavators, two water bowsers, three front-end loaders, three bulldozers, three drill rigs, a motor grader and one tyre handler.
The new equipment, together with the work of a contractor — Mota Engil — was expected to see output totalling a minimum of 450 000 tonnes per month by the second half of the year, the company said in a progress report shared by executive management.
The bulk of the equipment commissioned mid-June is faulty.
Bulawayo24 News revealed that over $250 000 was spent to hire chairs and tents from Harare.
The equipment is said to be performing below expectations as it is always down with reports of oil leaks and failure even to lift a bucket of coal, a development that has left management worried.
Information gleaned from ZBC says official bought worn out equipment as multiple problems being realised on a daily basis.
"One engineer who was part of the delegation to India from where some of the equipment was sourced, raised the red flag when the equipment arrived in the country after noticing differences with the one they had inspected in India" ZBC reported.
He said the supplier is currently attending to the problem since the equipment has a warranty and if it was second hand, it would have different problems on each machine.
The equipment was acquired from BELAZ and BEML under vendor-financed facilities.
PTA funded $18,2m purchase of equipment from BELAZ. India Exim Bank financed the purchase of equipment from BEML.
Part of the equipment included 10 dump trucks, five front-end loaders and two wheel dozers from BELAZ. BEML is set to supply HCCL with two excavators, two water bowsers, three front-end loaders, three bulldozers, three drill rigs, a motor grader and one tyre handler.
The new equipment, together with the work of a contractor — Mota Engil — was expected to see output totalling a minimum of 450 000 tonnes per month by the second half of the year, the company said in a progress report shared by executive management.
Source - Byo24News
