Hwange Colliery Invests Us$600M in Underground Mine
2025-09-29 10:03
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Wedoany.com Report-Sept. 29, Hwange Colliery Company Limited (HCCL) has committed approximately $60 million to a new underground coal mining project in Hwange, Zimbabwe, as part of a joint venture with Zhongjin Investments. Launched on September 26, 2025, the initiative aims to revitalize the company’s operations and enhance its role in Zimbabwe’s energy and industrial sectors.

The project supports the refurbishment of HCCL’s coke oven battery, which is expected to produce 18,000 tonnes of coke annually. “Initially, this is supporting the resuscitation of the Hwange Colliery coke oven battery, which will be producing 18,000 tonnes of coke per annum,” said Minister of Mines and Mining Development Winston Chitando during a tour of the site. The joint venture is also laying the foundation for a larger coke production facility targeting 1.8 million tonnes per year, contributing to Zimbabwe’s economic growth goals by 2030.

HCCL, a key player in Zimbabwe’s economy, supplies coal to the Hwange Power Station, the nation’s largest power producer, and provides coking coal to industries, including the emerging Manhize steel plant. The company’s operations create numerous jobs and support export markets, driving economic activity in the region. After facing financial challenges that led to administration over two years ago, HCCL has achieved a turnaround, producing over four million tonnes of coal annually through an effective Business Improvement Plan.

Engineer Akim Mutiti, HCCL’s underground mining consultant, highlighted progress during the minister’s tour. “Coal is intersected at one kilometre from here and at that point, the coal is 240 meters below the surface. At the bottom of the shafts, there are development tunnels. We have developed almost a kilometre from the bottom of the shaft and we are continuing development until we get to almost 6 kilometres,” he explained. Currently, the project yields 600,000 tonnes of coal per year, with plans to scale up to 2.5 million tonnes in 2026 and 3 million tonnes by 2027.

Mutiti noted that advanced mining equipment will be introduced in 2026, enabling an additional 210,000 tonnes annually from one mining area. “The good thing about this mining method is that the extraction is very good at around 90 percent of extraction, and we will also be mining the whole 10-metre seam that we have in Hwange,” he said. The coal will be transported via conveyor belts to a washing plant and then to coke ovens, where byproducts like coke oven gases will fuel a planned 420-megawatt power station, comprising one 120-megawatt unit and two 150-megawatt units, expected to be completed within three to five years.

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