BULAWAYO -- Production at the Hwange Colliery Company (HCC) fell by 17 percent last year owing to a harsh operating environment marked by hyperinflation and an acute shortage of hard cash to import machine spares. According to HCC chairman, Tendai Savanhu, coal production fell to 1 722 801 tonnes from the 2007 figure of 2 071 526 tonnes.
Savanhu attributed the fall to a constant breakdown of aged machines,
flight of skilled staff, price controls and a generally harsh economic
climate.
"The year ended 2008 was characterised by an extremely challenging operating
environment, Savanhu noted in the firm's audited financial results for last year.
"The high inflation, last recorded in June 2008 at 231million %
continued to negatively affect the cost of inputs whilst product prices
in the domestic market remained regulated for the greater part of the
year. The production tonnage for 2008 was lower than that of 2007 also
because the envisaged recapitalization of the business was not
achieved," he added.
Savanhu indicated that since there were no major equipment purchases
during 2008, the existing aged plant and equipment had frequent
breakdowns that constrained the company’s operations.
Hwange coking coal and industrial coal sales amounted to 494 990 tonnes
and were slightly below the 541 357 tonnes achieved the previous year.