HomeBusinessHwange in deal with Chinese

Hwange in deal with Chinese

HWANGE Colliery Company Limited (HCCL) has signed a deal with a Chinese firm whereby the coal miner would export coal worth over US$28 million annually.

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According to information at hand, HCCL would export an average of 250 000 tonnes of coal per year to Norinco Motors.

The deal was concluded recently and is part of a two- pronged approach by the Zimbabwe Stock Exchange-listed firm to up production and ultimately drive profits.

HCCL also signed a US$22 million equipment deal whereby it would get equipment from the Chinese firm.

Farai Mutamangira, HCCL board chairman told Standardbusiness on Friday the two transactions “are huge and will have a major impact on productions and bottom line”.

Mutamangira recently led a delegation of colliery executives to the Asian country where a Memorandum of Understanding (MOU) was signed between HCCL and Norinco Motors for the supply of coal.

The delegation had HCCL acting managing director Stanford Ndlovu and company secretary Tembelani Ncube.

The objective of the MOU was to establish a framework that enabled negotiations to focus on an initial delivery of 30 000 tonnes of coking coal per month and subsequent 20 000 tonnes per month on a three- year deal.

In the six months ended June 30 2012, HCCL recorded a net profit of US$500 000 from a loss of US$1,5 million in the same period last year.

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