Business / Companies
Govt gives Hwange Colliery bosses an ultimatum
31 Jan 2016 at 12:51hrs | Views
The government has given Hwange Colliery Company management three months to turn around the fortunes of the firm, failure of which they will be forced to resign.
The Minister of Mines and Mining Development, Walter Chidhakwa and his deputy, Freddy Moyo visited the loss making parastatal to meet with the board, management and workers in Hwange where new strategies were adopted.
The strategies include 50% cuts in salaries and all allowances for management to reduce the proportion on money used in the payment of wages.
The government also ordered a reduction in managerial positions from the 13, who currently report to the CEO.
"Government has committed itself to securing funding from two banks, to support working capital and other activities in the mining company but the management is required to have a business model that works to enable them to resuscitate the underground coal mining activities," said Chidhakwa.
Despite the fact that production levels fell to a record low of 70 000 tonnes per month, the Board Chairman, Mr Jemester Chininga, said the company will have reached its production target of 300 000 tonnes per month by mid-March.
Hwange Colliery Company has been facing a myriad of challenges ranging from dealing with faulty equipment imported from Belarus and India, erratic fuel supplies and payment of workers' outstanding salaries for 30 months, among other constraints.
The Minister of Mines and Mining Development, Walter Chidhakwa and his deputy, Freddy Moyo visited the loss making parastatal to meet with the board, management and workers in Hwange where new strategies were adopted.
The strategies include 50% cuts in salaries and all allowances for management to reduce the proportion on money used in the payment of wages.
"Government has committed itself to securing funding from two banks, to support working capital and other activities in the mining company but the management is required to have a business model that works to enable them to resuscitate the underground coal mining activities," said Chidhakwa.
Despite the fact that production levels fell to a record low of 70 000 tonnes per month, the Board Chairman, Mr Jemester Chininga, said the company will have reached its production target of 300 000 tonnes per month by mid-March.
Hwange Colliery Company has been facing a myriad of challenges ranging from dealing with faulty equipment imported from Belarus and India, erratic fuel supplies and payment of workers' outstanding salaries for 30 months, among other constraints.
Source - zbc
