Zimbabwe’s Coal Firm Considers Layoffs

Zimbabwe’s Coal Firm Considers Layoffs

Zimbabwe’s Hwange Colliery Ltd, a partly state-owned Zimbabwean coal miner, plans to cut 1,000 jobs this year from a total workforce of 3,000, in efforts to make the coal miner more viable, Reuters reported.

Deputy Minister in the Mines Ministry, Fred Moyo, told parliament that Hwange, which has been making losses for more than a decade, would cut overheads, trim its workforce, and has set a meeting with creditors in July. He added that the firm should have 2,000 employees, according to Mining Zimbabwe.

Hwange Colliery Company reported a $115m loss for the year period to end December 2015. Reducing its workforce by about 36% will save $15m a year.

Furthermore, the deputy minister said the High Court had approved a scheme by Hwange that would suspend all litigation against the company from creditors who are owed $160m. Moyo said Hwange would meet the creditors to find an agreement on how to repay its debts. Hwange CEO, Thomas Makore, said that the approval for the scheme was granted in the beginning of June.

The firm produces 150,000 tons of coal a month and Moyo said the company was working to double the output by end of the year.


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