Zimbabwe’s leading coal miner, Hwange Colliery has set aside more than USD 2 million for establishment of a coal depot in Zambia to enhance supply to the mining industry in the country.

In recent years, the company has been making exploration visits to Africa’s largest copper producer and wants to compete against major coal mining companies like Collum Coal Mine (Maamba Colliers), the country’s oldest coal miner with reserves estimated in excess of 78 million tonnes.

Hwange Colliery corporate affairs advisor, Burzil Dube, said there is high demand for coal in Zambia’s mining industry. That high demand has prompted the Zimbabwean company to consider setting up a coal depot in Zambia.

Hwange Colliery exports between 200 and 300 tonnes of coal per month to mining companies in Zambia as well as to major cement manufacturer, Lafarge PLC.

According to Hwange Colliery’s Dube, the company was awaiting a response on the acquisition of land where the depot will be located. Dube said that “We want to be closer to our clients as they are mostly concentrated here on the Copperbelt Province during the recent Zambia International Trade Fair.”

He said Zambia was one of Hwange Colliery’s biggest markets and it made business sense to establish a physical presence in the country.

Apart from Zambia, Hwange Colliery also exports coal to the DRC in addition to dominating supply in Zimbabwe.

The firm said it was pleased that Zambia’s President Michael Sata had invited Zimbabwean companies to exhibit at this year’s trade fair, which ran from June 27 to July 3.

The coal miner was participating at the Zambia International Trade Fair for the fourth year.

Mr Dube said that “Some Zimbabwean companies are participating for the first time following President Sata’s appeal when he officially opened the Zimbabwe International Trade Fair (in April 2012).”

Source - www.southerntimesafrica.com

(www.coalguru.com)