HCCL, Chinese firms in partnership agreement to boost coal production

HCCL Holdings has partnered a Chinese firm, Zhong Jiani Investment, to develop a new underground coal mine in Hwange.

The US$50 million project, also known as 3-Main North is expected to yield significant benefits for the company’s coal production.

The mine boasts a projected capacity of 1,2 million tonnes of coking coal per year and an operational lifespan of 25 years.

According to Akim Mutiti, the technical project consultant, substantial investments have already been made in exploration activities, the development of three shafts, and the construction of a washing plant.

The partnership structure sees HCCL holding a 23 percent stake in the project, with the remaining 77 percent owned by Zhong Jiani Investment.

Once operational, the mine’s revenue will contribute to the construction of coke oven battery that will process the extracted coking coal into high-value coke products.

The joint venture between HCCL and Zhong Jiani Investment signifies a significant development for Zimbabwe’s coal sector.

The new mine has the potential to increase coal production, create jobs and boost the regional economy.

HCCL has initiated the reconstruction of its existing coke oven battery.

This facility will temporarily process coal from the 3-Main North mine until a new, permanent coke oven battery is built directly at the new mine site.-ebusinessweekly