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Lafarge to import coal from Hwange Collieries

Lafarge to import coal from Hwange Collieries
By Fridah Zinyama
Tuesday June 10, 2008 [04:00]

LAFARGE Cement Zambia has been compelled to import most of its coal from Hwange Collieries Company due to lack of adequate coal production on the local market, corporate affairs manager Eugene Chungu has said. Zimbabwe’s coal-mining giant, Hwange Collieries Company (HCC), clinched deals to export more than 300 000 tonnes of coal products to neighbouring Zambia and Namibia.

These transactions entail the supply of 300 000 tonnes of coal fines to Lafarge Cement Company, the biggest producer of cement in Zambia, and 10 000 tonnes of nut pea duff to a Namibian company.

In an interview, Chungu said ideally, it would be better to purchase coal locally but that the biggest producer in the country, (Maamba Collieries), was currently unable to meet the growing demand in the country for the commodity.

“We are on schedule with the Tukule project and will soon be commissioning the project,” he said.
Chungu however noted that if the coal were locally produced, it would reduce the company’s cost of production as the much-needed coal would easily be accessed.

“We have had to consider other alternatives like Hwange because we are looking at the long-term effects of doing business without the much needed coal,” he said. “We have also been obtaining the coal from other sources locally but it is not enough to meet our demands.”

And according to HCC public relations coordinator Burzil Dube, the Lafarge Cement deal will cover the next two years, adding that the company has the capacity to deliver without failure.

“This deal will allow us to supply Chilanga Cement Company with 300 000 tonnes of coal fines over the next 24 months. “While we still have many problems relating to meeting the demand of our customers, I can safely say we will deliver to the Zambians on time. We have an abundance of coal fines throughout the coal field,” said Dube.

There have been concerns about the company’s ability to meet the target as its been experiencing problems.

Labels: LAFARGE

posted by MrK @ 4:27 AM