HomeBusiness DigestCoal production improves at Wankie

Coal production improves at Wankie

Eric Chiriga

WANKIE Colliery Company Ltd (Wankie), the country’s largest coal producer, says coal production and sales is improving with the company selling in excess of 300 000 tonnes last month. <

“The level of sales achieved in May 2004 was the highest attained in any single month during the past two years,” Wankie managing director Godfrey Dzinomwa said.

He said the dragline went through a comprehensive maintenance service during the period April 26 to May 24.

Dzinomwa said the unit was back in operation and they expected improved availability and coal exposure.

Wankie has been facing serious viability problems caused by the shortage of foreign currency in the country.

The company was also facing problems with coal merchants and this was threatening the supply of coal to farmers, particularly tobacco farmers, and other users across the country.

The problems emerged after the coal merchants had increased the price of coal to $800 000 per tonne.

Coal merchants cited the rapid and sharp increases of the price of the commodity from the supplier coupled with other costs along the supply chain as the main reason why they increased the price of coal.

Wankie is listed on the Zimbabwe, London and Johannesburg Stock Exchanges.

Apart from the government, Wankie’s shareholders include Messina Investment Ltd, Garmony Investment (Pvt) Ltd and 1 206 shareholders with a 16,87% stake.

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