THE Ministry of Mines, the majority shareholder in coal producer Hwange Colliery Company (HCC), is still to find replacements for its three directors who have been appointed government office
The company now needs a chairman and three new directors.
HCC chairman Munacho Mutezo was appointed the Minister of State for Water Resources, a position which enjoins him to leave the post.
Hwange Colliery Company is operating without a substantive chairman since his appointment.
The other appointments seek to replace long-serving director George Mlilo who was recently appointed permanent secretary in the Ministry of Transport and Communications and Tineyi Chigudu who has taken up the post of Manicaland resident minister and governor.
HCC chief executive officer Godfrey Dzinomwa refused to shed light of the company’s current board composition.
“I am sorry I am not the best person to comment on that, it is the majority shareholder who should comment,” Dzinomwa said. Government is the majority shareholding in the country’s coal mining giant.
The HCC boss however said the operations of the company’s board had not been disrupted due to the recent changes.
“The composition of the board at the moment has not affected us in any manner,” said Dzinomwa.
Minister of Mines Amos Midzi said his ministry was working on replacements for the three board members.
“It goes without saying that we will have to replace them and it will be very soon,” Midzi said.
A likely addition to the new HCC board will be the new permanent secretary in the Ministry of Mines, Justin Mupamanga as an overseer of government’s interest in the company.
Government has the single largest shareholding in HCC at 38%, followed by controversial British investor, Nicholas van Hoogstraten with a 12,66% through his Messina Investment and another 1,41% through UK-registered Willoughby Consolidated.
Hwange Colliery Company is planning an ambitious $2 trillion rights issue to recapitalise its operations. The company is planning to use the funds from the rights issue to expand coal mining operations and service its external debts.
The rights issue has however failed to garner the support of its minority shareholders who have raised concern over the likely cost of carrying out the exercise.
The minority shareholders prefer offshore funding.