Hwange Colliery, Glencore Start Talks to Renew Coke-Supply Deal

Hwange Colliery Co., the partly state-owned Zimbabwean coal miner, has started negotiations with Glencore Plc to renew a deal to sell the company its coke, a coal product used in steelmaking, after an initial agreement ended last year.

“We are negotiating a renewal after the trial contract expired late last year,” Hwange Colliery Chief Executive Officer Thomas Makore said in an interview Saturday in the north western resort town of Victoria Falls. Charles Watenpuhl, a spokesman for Glencore, declined to comment.

The original deal, for the supply of 9,000 metric tons, was signed in March 2015. “The initial arrangement worked very well,” Makore said. “We can’t say when the negotiations will be completed, but we are hopeful it will be extended.”

The coal company is also seeking to expand.

“We are also sourcing for funding for underground operations so that we can produce coking coal. Coke coal will provide raw material for coke which we can sell locally and export,” Makore said.

Hwange, which operates a mine in northwest Zimbabwe, is the country’s largest coal miner after Makomo Resources (Pvt) Ltd. and a supplier of the fuel to state-owned power utility Zesa Holdings (Pvt) Ltd.

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