Coal price set for review
TALKS are underway to review the coal pricing model to make it more sustainable following an outcry from coal producers, a senior official has said.
The coal producers recently complained that the product price was too low and did not reflect the high cost of production.
A tonne of coal is being sold for US$30 while on the regional market it is fetching between US$38 and US$47.
Speaking in an interview recently Mines and Mining Development Minister, Winston Chitando, said efforts to ensure sustainable pricing for coal was underway with an announcement on the review due this month. “Government is committed to ensuring that there is a sustainable pricing model, discussions are underway between the coal producers and the relevant Government departments,” he said.
“I would like to assure coal producers that very soon there will be an announcement by the relevant authorities on a long term pricing mechanism to ensure that there is sustainable delivery of coal not only to power stations but also other various users like coking plants and industry. So, I’m very confident that by the end of October that will be sealed so that we have a long term sustainable pricing for coal,” said Chitando.
He said the coal mining industry played an important role in the economy and was focused towards the US$12 billion mining industry by 2023.
“As you are aware coal producers are expected to play a critical role in enabling the country to attain a middle-income economy by 2030. We will continue to support these players especially with the various Government and private sector projects underway such as construction of power stations and coking plants. The demand for coal is growing and as such our producers must be capacitated to meet the increased demand,” said Minister Chitando. He said he was confident the mining sector will achieve the US$12 billion economy by 2023.
President Mnangagwa has also stressed the need to utilise available resources such as the land and minerals to drive economic growth.
According to the chairperson of Coal Producers Association, Mr Raymond Mutokonyi, the producers want a cost reflective price model. Members of the coal producers association are Hwange Colliery Company, Makomo Resources, Zambezi Gas and Galpex also known as Coalbrick Mine.-chronicle.co.zw
