Hwange Colliery Co. of Zimbabwe plans to export 50,000 metric tons of coal to neighboring South Africa this year and it’s gauging interest from buyers in Europe and Asia, the head of the company said.
“We are looking at Eskom, but the problem is the issue of price and logistics in terms of how to transport” the coal, Managing Director Thomas Makore said on Thursday in an interview at his office in Hwange, 730 kilometers (454 miles) west of the capital, Harare. Eskom Holdings SOC Ltd. is South Africa’s state-owned power utility.
“We are targeting Eskom, steel and the chrome industries in South Africa,” said Makore. “There is also interest from a number of countries in Europe; there is Turkey, Germany and there is also India.”
The company plans to mine 500,000 tons of coal, of which about 200,000 tons will be produced by Mota Engil Ltd. of Portugal. In March, Hwange Colliery signed a contract to supply 9,000 tons of coke to Glencore Plc. The company is also taking steps to move into coal liquids, diesel and ammonium nitrate.
“Our production for this year is better than 2014, our sales are better than 2014,” said Makore.
Mines Minister Walter Chidakwa on Friday told reporters that the government will convert the $78 million it is owed by the company into equity.