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Nqobile Bhebhe, Nqobile.bhebhe@chronicle.co.zw
HWANGE Colliery Company Limited (HCCL), currently under reconstruction, has reaffirmed its commitment to implementing its scheme of reconstruction, aimed at restoring the company’s value through the establishment of strategic business units (SBUs).
The SBUs are designed to operate under sound economic models, which are key to ensuring long-term sustainability and profitability. They are also tasked with significantly reducing the company’s balance sheet pressures caused by legacy debts.
The Government, which holds a 42 percent stake in HCCL, placed the company under reconstruction in 2022 for the second time in two years, following financial and operational challenges that hindered profitability and production. As a result, HCCL remains suspended from the Zimbabwe Stock Exchange (ZSE), where it was delisted in 2018.
The approved reconstruction plan, rolled out in 2023, involves splitting the company into separate entities focusing on housing and estate management, medical services and agriculture. This restructuring is expected to streamline operations and enhance efficiency across the business.
HCCL Chief Executive Officer, Mr William Gambiza, highlighted the company’s commitment to rebuilding and regaining its status as a key player in the coal industry.
“We have kicked off this year with an unwavering commitment to the continued implementation of the scheme of reconstruction, focused on rebuilding Hwange to restore lost value through our established SBUs,” said Mr Gambiza.
“The SBUs shall be required to contribute meaningfully to the reduction of balance sheet pressures emanating from legacy debts.”
Mr Gambiza said the coal entity is committed to key priority areas of the business improvement programme, including ESG and sustainability, market growth and customer value, corporate growth, operational efficiency and financial stability, digitalisation and automation, and human capital and talent management.
Additionally, supply chain management, corporate branding, strategic partnerships and stakeholder management are other key areas.
Mr Gambiza stressed that effective corporate branding and stakeholder management are vital for the company’s growth in a competitive business environment.
“A well-crafted brand strategy can propel HCCL to new heights, fostering customer loyalty, differentiation and long-term profitability,” he added.
Mr Gambiza reiterated that all SBUs must establish robust economic models to ensure sustainability and profitability.
“Sales growth, asset management and cost management remain key value drivers for the companies. In 2025, all SBUs need to establish a sound unit economics model as this is the key to long-term sustainability and profitability across all the SBUs,” he said.
Another key focus area will be the commissioning of the ZimHwange Coal Company underground mine (3-Main North) joint venture in the first quarter, while the much-anticipated commissioning of the coke oven battery is also set to take place during the same period.
“In 2025, we will also witness the creation of two new joint ventures, one for number three underground pillars and another for Chaba West underground coal mine. The joint ventures will be structured in a manner that unlocks anticipated synergistic benefits, namely revenue, cost and financial synergies,” he said.
“Management is also working on continually unlocking value embedded in our real estate portfolio through the implementation of sound investment strategies for the Hwange Property Company (HPC).”
He expressed optimism that these efforts, coupled with strategic partnerships and sound management practices, would reposition HCCL as a competitive and profitable entity.
Mr Gambiza further noted that the SBU Hwange Lubimbi Energy Company (HLEC) will advance the energy assets through exploration drilling and technical studies. The energy company will also embark on the provision of domestic and commercial solar solutions in the region.
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