23 January 2018
   
Mzembi challenges arrest; quits politics
Mudzuri: Amnesty for MDC-T cop murder 3
Mnangagwa: Grace mentally unstable
ZESA gave Chivayo $7m, not $5m: Parly
Botswana cops release Mugabe cars
Grace's luxury cars damaged in accident
Chamisa dares military chief on elections
Winky D gives voter registration oomph
MORE NEWS
Filthy 5-Star hotels: Economy blamed
Gemmology center in Mutare soon
MORE BUSINESS
‘Am I African’ explores Zim's race conflict
Gafa’s Epworth concert draws thousands
MORE SHOWBIZ
Billiat might still leave: Sundowns coach
Katsande: Chiefs show championship mentality
MORE SPORTS
Mnangagwa’s ‘New’ Zim merits support
Zhuwao: kleptocracy and EDiots in Davos
MORE OPINION
 
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
MORE COLUMNISTS
 
 
Hwange offered $11m by Indian bank
17/02/2014 00:00:00
by The Source
 
Workers paid something ... Walter Chidhakwa
 
RELATED STORIES
Govt mulls Hoogstraten Hwange offer
1,000 Hwange workers put on unpaid leave
Woman battered by cops battling for life
Hwange spends $11m on equipment upgrade
Hwange suspends 500 striking workers
Hwange buoyed by strong exports
Hwange Colliery seeks US$50 million

CASH-STRAPPED coal miner, Hwange Colliery Company Limited (HCCL) is seeking an $11 million line of credit from India to boost production, the mines minister has said.

“They (Hwange) have come to us (mines ministry) to look at the possibility of establishing a line of credit which they have been offered by the Indians.

“We have agreed to them accessing the $11 million for the purchase of equipment which will strengthen their capital base and enable them to do much more mining,” Mines minister Walter Chidakwa told the Senate during a question and answer session recently.

Reports suggested that the loan facility had been offered by Export-Import Bank of India.

Chidakwa said a team from the company visited India two weeks ago to look at the equipment.

“I hope that by giving them that capital equipment, they will be able to produce much more coal than they have been producing,” he said.

Responding to a question about what government was doing about the plight of workers at Hwange who had gone for about eight months without pay, he said: “The information that I have is that they have been paid something.

“I don’t think it’s a full salary. I understand from the chairman of the board that they have problems with capacity to mine.”

Chidakwa said HCCL, the biggest coal miner in the country, was struggling to recover money owed by power utility, Zesa Holdings which was “taking stuff but not consistent in paying.”

He said he would follow up with the company on the matter.

“It’s an important matter. We must make sure things are properly managed and we get the results that we want,” he said.

Last year, Hwange temporarily sent 1,000 workers – nearly a third of its total workforce – on unpaid leave.

In January, the company signed a $260 million, five year mining contract with Portuguese firm, Mota-Engil.

It is sitting on a debt of $160 million and owes workers more than $14 million.

Government is yet to decide on the $50 million rescue package offered by shareholder and businessman, Nicholas van Hoogstraten last year.

Van Hoogstraten holds a 30 percent interest in the mine, the second largest after the government’s 37.10 percent, and had demanded management control of the company for five years in exchange for the cash.



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker