Business / Companies
Hwange Colliery 'second hand' equipment saga takes new twist
08 Jul 2015 at 04:41hrs | Views
Hwange Colliery Company Limited (HCCL) management has denied reports that it splashed a staggering $31 million on second hand equipment.
The bulk of the equipment was commissioned mid-June by vice president Phelekezela Mphoko.
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.
Bulawayo24.com and various media house including state run Herald, ZBC and privately owned News Day carried reports that the equipment was faulty.
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.
However, in press statement today (Wednesday) managements said the equipment is brand new.
Below is the full statement:
Press Statement
HWANGE COLLIERY COMPANY LIMITED'S RESPONSE TO NEW EQUIPMENT ALLEGATIONS
The various negative reports circulating with regard to the new equipment purchased from BEML India that was commissioned by Hwange Colliery Company Limited recently on 19 June where it is alleged that the equipment is second hand, has reference.
Hwange Colliery Company Limited together with its supplier BEML refutes these allegations as baseless, misinformed, unfounded, defamatory and malicious.
BEML is a state owned organization, owned by the government of India, and is engaged in design and manufacturing of mining and construction equipment over the last five decades.
It has a major market share for this equipment in India and has exported similar products to more than 60 countries globally where the machines have been successfully deployed.
The equipment that was supplied is brand new and under warranty and free from ant defect in design, materials or workmanship.
It is misinformed to report that the machines are second hand as they have new serial numbers and are under warranty.
The fact of the matter is that Hwange Colliery Company is still commissioning phase of the new equipment.
The entails that the equipment undergoes load testing in order to identify any snagging issues which the supplier will resolve.
This load testing brings to the fore any issues with regard to the equipment that may result due to transportation or assembling process. HCCL would like to highlight that problems of this nature normally occur during any new equipment commissioning phase.
Once the machines are deployed into production and their performance during operation have been monitored and approved, then commissioning can be completed
In view of the above, Hwange Colliery Company Limited considers these allegations as unfounded.
Issued by :
Hwange Colliery Company Limited
6 July 2015
Directors:F.Mutamangira (Chairman),S.T.Makore (MangingDirector), N.S.Chibanguza, J Chininga, I.C. Huruperi, J.Muskwe, V.Vera
BEML Limited Press statement
BEML/EXP/HCCL/ 1391
July 06th, 2015 '
M/s Hwange Colliery Company Limited
Coronation Drive P O Box 123
Hwange
Kind Attn: Mr. Thomas Makore,
Managing Director
Dear Sir,
With great concern we received your email message indicating that the local media in Zimbabwe have published negative image on BEML, which is a state run organization; engaged in design and manufacturing of mining and construction equipment over the last five decades. It is pertinent to mention here that apart from holding a major market share for these equipment-in India, BEML has exported similar products to more than 60 countries globally, which are gainfully deployed.
We confirm that the mining equipment supplied to M/s Hwange Colliery Company Limited (HCCL) are indeed brand new and are in complete compliance with the specifications agreed to between HCCL and BEML and supplied after due certification by our Quality team, besides your own team. The EXIM Bank of India also assessed BEML's capacity and capability in supplying quality equipment before they finalized to support the finance package. As such, there is no room for supplying any equipment of inferior quality.
We, strongly express that the allegations made by local media are baseless and erroneous, who are probably misinformed and we take strong exception to unfounded allegations which have a defamatory and undermining impact on BEML brand image and business.
As mentioned in our today's mail, we have taken all the actions that are required to support HCCL and we assure you that all the equipment will be put to effective use on or before 20th July 2015 progressively.
Warm regards,
For BEML Ltd.
Nagendra Kumar SS
Asst. General Manager
Ragd. Office : 'BEML SOUDHA', 23/1, 4th Main Road. S.R. Nagar. Baogalore-560 027. INDIA Ph : +91-80-2223 3350.2222 2730 Fax: +91-80-2222 4874. e-mail: office@export.bemi.co in Website: www.bamiindia.oom
The bulk of the equipment was commissioned mid-June by vice president Phelekezela Mphoko.
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.
Bulawayo24.com and various media house including state run Herald, ZBC and privately owned News Day carried reports that the equipment was faulty.
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.
However, in press statement today (Wednesday) managements said the equipment is brand new.
Below is the full statement:
Press Statement
HWANGE COLLIERY COMPANY LIMITED'S RESPONSE TO NEW EQUIPMENT ALLEGATIONS
The various negative reports circulating with regard to the new equipment purchased from BEML India that was commissioned by Hwange Colliery Company Limited recently on 19 June where it is alleged that the equipment is second hand, has reference.
Hwange Colliery Company Limited together with its supplier BEML refutes these allegations as baseless, misinformed, unfounded, defamatory and malicious.
BEML is a state owned organization, owned by the government of India, and is engaged in design and manufacturing of mining and construction equipment over the last five decades.
It has a major market share for this equipment in India and has exported similar products to more than 60 countries globally where the machines have been successfully deployed.
The equipment that was supplied is brand new and under warranty and free from ant defect in design, materials or workmanship.
It is misinformed to report that the machines are second hand as they have new serial numbers and are under warranty.
The fact of the matter is that Hwange Colliery Company is still commissioning phase of the new equipment.
The entails that the equipment undergoes load testing in order to identify any snagging issues which the supplier will resolve.
This load testing brings to the fore any issues with regard to the equipment that may result due to transportation or assembling process. HCCL would like to highlight that problems of this nature normally occur during any new equipment commissioning phase.
In view of the above, Hwange Colliery Company Limited considers these allegations as unfounded.
Issued by :
Hwange Colliery Company Limited
6 July 2015
Directors:F.Mutamangira (Chairman),S.T.Makore (MangingDirector), N.S.Chibanguza, J Chininga, I.C. Huruperi, J.Muskwe, V.Vera
BEML Limited Press statement
BEML/EXP/HCCL/ 1391
July 06th, 2015 '
M/s Hwange Colliery Company Limited
Coronation Drive P O Box 123
Hwange
Kind Attn: Mr. Thomas Makore,
Managing Director
Dear Sir,
With great concern we received your email message indicating that the local media in Zimbabwe have published negative image on BEML, which is a state run organization; engaged in design and manufacturing of mining and construction equipment over the last five decades. It is pertinent to mention here that apart from holding a major market share for these equipment-in India, BEML has exported similar products to more than 60 countries globally, which are gainfully deployed.
We confirm that the mining equipment supplied to M/s Hwange Colliery Company Limited (HCCL) are indeed brand new and are in complete compliance with the specifications agreed to between HCCL and BEML and supplied after due certification by our Quality team, besides your own team. The EXIM Bank of India also assessed BEML's capacity and capability in supplying quality equipment before they finalized to support the finance package. As such, there is no room for supplying any equipment of inferior quality.
We, strongly express that the allegations made by local media are baseless and erroneous, who are probably misinformed and we take strong exception to unfounded allegations which have a defamatory and undermining impact on BEML brand image and business.
As mentioned in our today's mail, we have taken all the actions that are required to support HCCL and we assure you that all the equipment will be put to effective use on or before 20th July 2015 progressively.
Warm regards,
For BEML Ltd.
Nagendra Kumar SS
Asst. General Manager
Ragd. Office : 'BEML SOUDHA', 23/1, 4th Main Road. S.R. Nagar. Baogalore-560 027. INDIA Ph : +91-80-2223 3350.2222 2730 Fax: +91-80-2222 4874. e-mail: office@export.bemi.co in Website: www.bamiindia.oom
Source - Byo24News
