Hwange Colliery Company Limited (HCCL) has signed two memoranda of understanding with two firms as the Zimbabwe Stock Exchange-listed company seeks to increase its coke output.
BY NDAMU SANDU
The two MOUs were signed with China National Chemical Engineering Co. Limited (CNCEC) and Afrochine (Pvt) Limited, a company incorporated under the laws of Zimbabwe.
The MOUs shall remain in force for a period of 24 months.
HCCL and CNCEC want to cooperate across the entire value chain, with an initial focus on the supply, installation and commissioning of 50 000 tonnes per month coke oven battery.
Phase 1 of the project involves a capacity of 25 000 tonnes. The capacity would be increased to 50 000 tonnes per month under Phase 2 of the project.
CNCEC is a technology and engineering enterprise with qualifications in industrial engineering covering integration of multidisciplinary projects, investing and financing, prospecting, design and engineering, procurement and construction.
CNCEC boasts of having undertaken projects in the fields of chemical, petrochemical, pharmaceutical, power and coal industry, among others.
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HCCL and Afrochine will cooperate across the entire value chain. Initial focus will start with the purchase of coke from HCCL and investment in coke oven batteries.
Afrochine, has two operational ferrochrome electric arch smelting furnaces with an annual production of 50 000 tonnes.
The furnaces were built during the first phase of the ferrochrome smelting plant. The second phase will expand that capacity to an annual production of 500 000 tonnes.
If the MOUs are translated into agreements, the move would boost coke output. In the half year ended June 30 2014, coke sales volume decreased to 18 363 tonnes from 25 839 in the same period last year.
The decrease was attributed to the low production performance of the aged coke oven battery that had to be decommissioned.
HCCL managing director Thomas Makore told Standardbusiness discussions with Afrochine and CNCEC would increase coke demand as well as making the company have its own coke oven battery.
“If everything goes well, we will have our own coke oven battery within 36 months,” he said.
Following the decommissioning of its aged coke oven battery, HCCL entered into a toll coking agreement with South Mining Company to mitigate the problem.
