Hwange Colliery’s transport costs to benefit from revival of Zimbabwe railways
The revival of the National Railways of Zimbabwe (NRZ) is expected to help Hwange Colliery overcome the high costs of transporting coal by road, the company said in its results to end-December, released on Thursday. Hwange Colliery, which changed its name from Wankie several years ago, is a majority state-owned Zimbabwean coal miner listed on three stock exchanges — Zimbabwe, Johannesburg, and London. In February, the NRZ took delivery of new locomotives, passenger coaches and 157 wagons as part of a deal between a consortium made up of Zimbabwe’s Diaspora Infrastructure Development Group (DIDG) and Transnet. Hwange Colliery said on Thursday working capital constraints — namely hard currency requirements largely dependent on allocations from the reserve bank — had seen the company failing to meet its production target in the year to end-December. But the Zimbabwe coal miner managed to cut its loss for the year by half. A better performance in 2017, compared to 2016, led to a 51% red...
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