Abramovich in talks to buy Zimbabwe coal mine

Abramovich in talks to buy Zimbabwe coal mine

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By Staff Reporter

CHELSEA Footall Club owner and Russian billionaire Roman Abramovich has opened talks over buying Hwange Colliery Mine – Zimbabwe’s biggest coal producer located in the remote western tip of the country.

Abramovich took a helicopter ride to the mine on Tuesday last week after checking himself into the Elephant Hills hotel in nearby Victoria Falls, local media reported.

The oil magnate, considered the 15th richest man in the world with a personal fortune of about US$23,5 billion (£11,75 billion), was accompanied by an entourage of 15 bodyguards after flying into Zimbabwe on his private jet.

He left the country on Thursday last week after a sight-seeing tour of the Victoria Falls and the statue of David Livingstone – the first westerner to discover the majestic falls.

A take-over of the coal mine will see Abramovich also gaining control of Hwange Football Club which was relegated from Zimbabwe’s top division last year.

The state-run Herald newspaper reported on Saturday that Abramovich had taken a site tour of the mine. Quoting sources at the mine, the paper said “mine management are happy that initial indications have pointed to a possible deal”. The deal is said to involve a Zimbabwean bank.

The Zimbabwe government currently owns 40% of Hwange Colliery Company (formerly known as Wankie Colliery Company), but is seeking to sell its interest to potential investors.

Hwange provides Zimbabwe’s energy needs, with 72% of the coal mined from its coal fields going directly towards the generation of electricity at Hwange Power Station.

In 2004, Hwange failed to open its new Main Underground Mine due to a shortage of funds. The opening of the new underground mine - with a life span of 25 years - had been planned for June 2004 but was suspended when the company failed to raise US$25 million.

If Abramovich can take control of the Colliery Company, the recapitalisation could help the company meet its production capacity. Currently, the company is only meeting 52 percent of the national demand.

Against a national demand for coal of around 380,000 tonnes per month, Hwange is managing a meagre 197,300 tonnes which it is supplying to Zimbabwean companies. This leaves a shortfall of 182,700 tonnes every month.

MAN AND HIS TOY: Roman Abramovich's private jet
LUXURY: Abramovich flew into the Victoria Falls Airport on his private jet
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