THE country’s second largest coal producer, Makomo Resources, is planning to produce 450 000 tonnes of coal per month by the first quarter of this year, more than twice its current production level.
Makomo Resources currently produces about 200 000 tonnes of coal per month.
The was disclosed by the company’s director, Raymond Mutokonyi , who told the Financial Gazette’s Companies & Markets (C&M) that the envisaged growth had been made possible by the commissioning of the company’s washing plant.
The installation of the washing plant has seen Makomo Resources producing three types of coal, namely power coal, dry and wet screened peas and coking coal.
“We now have the capacity to respond to increased demand for coal for both the local and export markets and we will be able to produce up to 450 000 tonnes a month by the first quarter of 2016,” said Mutokonyi.
The bulk of the coal produced by Makomo is consumed by Hwange Power Station while the remainder is supplied to small thermal power stations as well as regional markets.
The company has supplied 4,2 million tonnes of coal to Hwange Power Station, while about one million tonnes were supplied to smaller power stations for the past four years.
Mutokonyi said as part of capitalisation efforts in response to increased demand, the company had bought a screening plant, three 50 tonne dump trucks, two 100 tonnes excavators and two front end loaders, two months ago.
Mutokonyi, however, declined to disclose the cost of the equipment.
Coal mining companies have for the last four years been struggling to cope with increasing production costs amid general decline in global commodities.
Makomo Resources started mining operations in 2010 with its main endeavour being to stabilise coal stock pile at the Hwange Power Station as the only supplier then Hwange Colliery Company Limited (HCCL) was struggling to meet demand for the commodity.
The company has since its inception invested more than US$200 million.
HCCL used to enjoy a monopoly in coal production, but has come under pressure from new producers, such as Makomo Resources, Coal Brick and Chilota Colliery, who have chipped off its market share.
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