Zimbabwe’s coal sector in danger

Zimbabwe’s coal-mining group, Hwange Colliery Company (HCC), may be forced to close within 40 years unless government reclaims the coalfields from Zimbabwe Power Company (ZPC), which has no capacity to exploit the huge concession it holds, a Ministry of Mines and Mining Development report says.“The strong message from the assessment is that the company’s coal reserves have dwindled to critical levels. “There will no longer be any Hwange to talk about beyond the next 40 years,” the report says.It expresses concern about the allocation of huge concessions to ZPC and the rejection of HCC’s application for special grants to explore for coal in the Entuba and Lubimbi areas, which would have given the coal-miner an additional 100 years of operation.The report notes that, in acquiring the concessions, ZPC went beyond its core business of power generation and distribution, further reinforcing calls that its concessions be transferred to HCC.“It is, therefore, recommended that the policy surrounding the allocation of the western [coalfield] areas to ZPC be revised with a view to reallocating them to Hwange.”In a recent statement to shareholders, HCC, whose reserves are dwindling, indicated that the “unfortunate coal reserve position” could force a step-by-step closure of operations.The Zimbabwean government owns a 38% stake in HCC.