Hwange Colliery chairman Tendai Savanhu said despite all three mines working, consistent breakdown of equipment resulted in production declining by about 11%.
“The decrease in production was caused by the persistent breakdowns of the existing aged plant and equipment. The dragline was down for the first three quarters of the year,” said Savanhu when announcing the company’s year-end financial results.
Total coal and coke sales for the year amounted to 1 709 952 tonnes ended marginally lower than 1 722 801 tonnes achieved in 2008. Export sales stood at 138 062 tonnes against 251 575 tonnes during the same period last year.
“Demand for coal and coke products in the domestic market was not as anticipated because most sectors operated below capacity. However demand in the export market remains strong,” Savanhu said.
The Hwange coking coal and Hwange industrial coal sales amounted to 429 213 tonnes and were slightly below the tonnage of 494 990 achieved the previous year.
A total of 185 726 tonnes of coal fines were sold during the year locally and to export markets and this was 26% above the 147 228 tonnes sold in 2008.
“Hwange Power Station coal supplies to Zimbabwe Power Company’s Hwange Power Station amounted to 1 033 602 tonnes and is comparable to 1 073 602 tonnes delivered the previous year,” said Savanhu.
Coke sales, including breeze amounted to 47 785 tonnes of which 80% was exported and this was far less than the 154 529 tonnes sold in 2008. The coke oven battery which is currently under maintenance was out of production for the greater part of last year.
During the period under review Hwange Colliery achieved a turnover amounting to US$66,4 million and a gross profit of US$23,3 million.
The company realised an operating profit of US$5,8 million. Attributable profits for the year amounted to US$2,6 million.
“The property plant and equipment amounted to US$71,6 million. Share capital and reserves amounted to US$52 million,” said Savanhu.
Current assets amounted to US$49 million and included the trade receivables of US$25 million mainly attributable to the company’s major customer –– Zimbabwe Power Company.