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Hwange of Zimbabwe Coal Output to Surge on Underground Mining

  • Company targeting five-fold increase in underground production
  • Hwange supplies coal to state-owned electricity utility
A raw coal pile sits at a mine near Wylo, West Virginia
Photographer: Bloomberg Creative Photos/Bloomberg

Hwange Colliery Co. expects to boost underground coal production five-fold this month when it restarts operations after a two-year hiatus, a company official said.

The resumption will help the loss-making company tap more lucrative deposits of coking coal, used to make steel, as it seeks to report its first profit since 2012. Zimbabwean miners who produced 2 million tons of coal last year are targeting 10 million tons of output in two years, which would enable them to begin exporting the fuel.