WINDFALL FOR HCCL WORKERS
HWANGE Colliery Company Limited workers were this week paid $800 each as partial payment of their outstanding salaries under the Scheme of Arrangement that creditors approved recently.
Workers said they were elated by the windfall which is coming when they had gone for more than two years without receiving salaries.
“It’s very true and we are very happy as workers that the company is demonstrating its commitment to clear the salary backlog. The money was deposited into our bank accounts yesterday,” said workers’ committee chairperson, Mr Garikayi Sigauke.
Most workers including the lowest paid got about $800 which is about seven percent of what they are owed.
The development comes as the mining giant’s production for May rose by more than 300 percent to 170 000 tonnes compared to 52 000 tonnes in April. The increased production followed shareholders approval of a debt repayment scheme, which allowed the company to borrow working capital.
In May HCCL creditors approved a Scheme of Arrangement which stopped litigations and writs of executions, which had crippled the company’s operations and it also allows the colliery to borrow working capital from banks.
Mr Sigauke said workers’ morale had been boosted following the part payment of their salaries and they were now confident that their outstanding salaries will be paid.
He commended Government for committed to the survival of the company.
“As workers we are happy especially that Government has honoured its promise on the Scheme of Arrangement. We are also happy that production remaining in the country.
Over the past 20 years, NRZ operational performance has been in the negative due to the prevailing economic climate that has also seen the parastatal accrue legacy debts amounting to $144 million requiring about $1.9 billion in the long-term.
NRZ has since gone onto the market seeking investors to turnaround one of the strategic State enterprises.
Last month, it emerged during a pre-bid conference held in Bulawayo with potential investors or partners that the Government has granted national project status to the recapitalisation of NRZ to the tune of $400 million through an open market tender system.
It is hoped that the required $400 million recapitalisation package will be raised in the form of either debt, equity or any creative combination.
The tender, which closes on July 4, has attracted over 80 private bidders locally as well as those from countries such as South Africa, Malaysia, Dubai, India, China, United Kingdom and Belgium.
Once the required recapitalisation funding is secured, NRZ targets to move 14 million tonnes of freight per year.
At its peak in 1998, NRZ moved 18 million tonnes of cargo. — okazunga has started picking. Last month we produced more than 100 000 tonnes and we are likely to maintain that this month.
“This seven percent payment will definitely boost staff morale and assist production. We have also started getting salaries on a monthly basis and on that note we will continue supporting Government and management to ensure this company maintains growth,” said Mr Sigauke.
The impact of salary payment has been felt by the business community in the coal mining town as most businesses reported brisk business since yesterday.
One retail shop manager identified as Mr Moyo, said the business community was happy that people now have disposable income.
Managing director Engineer Thomas Makore, who could not be reached for comment, is on record saying Hwange’s total debts stood at $352 million, which it will convert to long-term liabilities under the Scheme of Arrangement. The company also requires $15 million working capital in the short-term to boost production.
“Our capital requirements are big, so in terms of developing our new concessions, we will require external funding. We will be approaching a number of financial institutions, local and international so that we raise that money,” Eng Makore told journalists at the 45th memorial commemorations of the 1972 Kamandama mine disaster that killed 427 miners.
In 2015, Government granted HCCL new coal concessions in Western Area, Lubimbi East and West with an estimated resource of 750 million tonnes of mainly coking coal and thermal coal. In April, the company signed two off-take deals with the Zimbabwe Power Company and independent power producer Lusulu Power for a combined supply of five million tonnes of coal annually. Eng Makore has said that the company has been paying monthly salaries since December last year.