By Alois Vinga
HWANGE Colliery Company Limited (HCCL) remains under administration and on Zimbabwe Stock Exchange (ZSE) suspension, the concern’s management revealed Monday.
The coal miner was placed on suspension after government which owns 38% of Hwange moved to place the firm under administration.
ZSE announced that the miner will be suspended for the entire duration of the administration order.
Under the country’s Reconstruction Act every disposition of the property rights of action of the company and every transfer of shares or alteration in the status of its members, made after the commencement of the reconstruction shall, unless the administrator otherwise orders, be void.
The company has been limping along financially for years. In 2019 it was reported that its liabilities exceeded assets by US$19 million.
This development made it doubtful that the company could carry on as a going concern after having been placed under judicial management.
Presenting a trading update Monday for the quarter ended March 31 2023, HCCL company secretary, Chrispen Ncube said the company remains under administration.
“The Administrator of the company wishes to advice that the company remains under administration in terms of the Reconstruction of State-Indebted Companies Act [Chapter 24:27] of Zimbabwe.
“The company’s listing on the Zimbabwe Stock Exchange ZSE also remains suspended,” he said.
He said the operating economic environment for the quarter under review was stable on the back of a market buoyed by a strong demand for both thermal and raw coal that positively pushed sales.
He said total coal mined for the year-to-date increased by 93% compared to the same period last year with production volumes of Hwange Power Station (HPS) coal increased to 494 820 tonnes in comparison to 398 728 tonnes in the same period in 2022.
Production volumes at Hwange Coking Coal (HCC) and Hwange Industrial Coal (HIC) increased to 773 771 tonnes in comparison to 259 489 tonnes in the same period in 2022.
Total tonnes sold for the three months increased from 683 896 to 1 064 014 tonnes compared to the same period last year.
“The year-to-date revenue for the three months ended 31 March 2023 increased from ZWL 3,3 billion in the same period last year to ZWL 39,4 billion in historical terms.
“This was largely due to an increase in production and regular product price adjustments in line with market value,” added Ncube.