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.
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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.
