Hwange Colliery MD Says Loan Talks Focus on Repayment Guarantees

July 2 (Bloomberg) -- Hwange Colliery Ltd.’s talks with the Development Bank of South Africa over a proposed $100 million loan are focused on how the Zimbabwean mining company will guarantee repayment, Managing Director Fred Moyo said.

“Our talks are now centered on how to provide DBSA with the necessary security,” Moyo said today in a phone interview from western Zimbabwe’s Hwange, the nation’s biggest colliery.

The mine needs at least $200 million to recapitalize the business, Moyo told the state-run Chronicle newspaper on May 16.

Hwange exports coal to neighboring countries and India, and provides coal for Zimbabwe Power Corp., a unit of government-owned electricity utility Zesa Holdings (Pvt) Ltd.

To contact the reporter on this story: Brian Latham in Johannesburg at in Harare at blatham@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net.