Hwange cuts costs

Hwange Colliery Company Limited recently introduced cost cutting measures in an attempt to improve itsliquidity.

Speaking at the 40th anniversary of 427 miners who died in the Kamandama Mine Disaster which occurred on June 6 1972, HCCL’s Managing Director, Fred Moyo, said:

“Hwange Colliery has made difficult decisions to protectthe company. Actions such as changing employee conditions of service andreducing contractor activity are aimed at improving the company’s finances, “said Moyo.

He added that the company had also reviewed rentals for its properties to recover costs from tenants. Moyo said the company was facing numerous challenges.

“Local companies are struggling to capitalise and compete on an international level,” he said.

The colliery requires about $200 million to recapitalise. It has been engaged in talks with an Indian company forthe past two years, but no deal has emerged.

Post published in: Business

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