Makomo plans to dou­ble pro­duc­tion

Chronicle (Zimbabwe) - - Business Chronicle - Bianca Mlilo re­cently in Hwange

COAL miner Makomo Re­sources plans to in­crease its out­put to about 300 000 tonnes per month within the next two years when its cap­i­tal­i­sa­tion pro­gramme is ex­pected to take ef­fect.

Makomo is cur­rently the coun­try’s largest pro­ducer and sup­plier of coal given the demise of Hwange Col­liery Com­pany Lim­ited.

Speak­ing dur­ing a tour of the mine on Fri­day, Makomo Re­sources gen­eral man­ager Mr Sam­son Mab­vira said the mine presently pro­duces about 160 000 tonnes of coal per month.

“We are look­ing at dou­bling pro­duc­tion of coal from the 160 000 tonnes per month we’re pro­duc­ing now to about 300 000 tonnes in about two years,” he said.

“This will be made pos­si­ble by a cap­i­tal­i­sa­tion ven­ture we’re work­ing on so that we can in­crease pro­duc­tion and in the long run record higher prof­its.”

He said when the coal min­ing con­cern started op­er­a­tions in 2010, their aim and man­date was to sta­bilise coal sup­ply in the coun­try. The com­pany reached its peak pro­duc­tion in 2013 but in 2014 and 2015 pro­duc­tion was low due to re­duced de­liv­ery to the Zim­babwe Power Com­pany.

Mr Mab­vira said their aim go­ing for­ward was to sur­pass their 2013 pro­duc­tion (which was the high­est at 186 000 tonnes per month), and were tar­get­ing to go beyond 200 000 tonnes by end of the year.

In a re­lated is­sue, Makomo Re­sources ex­ec­u­tive di­rec­tor Mr Ray­mond Mu­tokonyi told Busi­ness Chronicle that busi­ness was go­ing well for them, as ev­i­denced by the rise in ex­ports and lo­cal de­mand.

“Our com­pany is record­ing in­creased ex­ports this year, ev­i­denced by an 18 per­cent in­crease com­pared to last year. We’re now ex­port­ing more to the DRC (Demo­cratic Repub­lic of Congo), Zam­bia and Malawi,” he said.

“We’ve also recorded a 17-23 per­cent up­take in lo­cal de­mand and we would like to be­lieve this has been as a re­sult of the qual­ity of coal we pro­duce and its ac­cep­tance by the mar­ket.”

Makomo owns one of the two dense medium sep­a­ra­tors found in sub-Sa­ha­ran Africa. A dense medium sep­a­ra­tor is a ben­e­fi­ci­a­tion tech­nol­ogy, which sep­a­rates coal ac­cord­ing to den­sity.

Mr Mu­tokonyi also said the com­pany was still in ne­go­ti­a­tions with the four for­eign firms that had shown in­ter­est in deal­ing with them dur­ing this year’s edi­tion of the Zim­babwe In­ter­na­tional Trade Fair.

He, how­ever, could not be drawn into dis­clos­ing their names, cit­ing trade se­crets.

Makomo is jointly-owned en­tity by Zim­bab­wean and South African in­vestors, with those from the neigh­bour­ing coun­try hold­ing a 40 per­cent stake. — @Bian­caMlilo

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