BULAWAYO, February 7 (The Source) – Zimbabwe’s leading coal producer, Makomo Resources says failure by the Zimbabwe Power Company to service its $25 million debt has crippled operations, with output falling to 30 percent of capacity.
Company director Ray Mutokonyi told The Source that production was now at 60,000 tonnes a month from 200,000 tonnes because the company cannot service its equipment.
“ZPC owes us in excess of $25 million and the non-payment means we are not able to service our equipment on time. This then means we are not able to meet our production targets,” he said.
The power generation unit, ZPC uses between 3,000 and 4,000 tonnes of coal per day, and requires around 120,000 tonnes per month.
Makomo has become a major supplier of coal to ZPC after government-controlled Hwange Colliery Company failed to meet demand due to operational challenges.
“At this rate yes, we cannot meet ZPC demand,” added Mutokonyi.
The coal mining company has a coal concession at Entuba Coal Fields which covers 7,000 hectares.
Its estimated the open cast resources have a lifespan of more than 30 years at 1 million per annum plus another 100 years of underground mining.