Steelmakers Zimbabwe will this year buy coal processing equipment worth US$1,6 million to increase output at its colliery in Chiredzi, the general manager Mr Alexander Johnson, has said.

In 2006, the Government granted the steel manufacturing firm rights to venture into coal mining in Chiredzi.

Mr Johnson said the machinery would be bought from South Africa.

“We have identified coal plant worth US$1,6 million comprising a crusher and a wash plant from a South African mining equipment supplier. The plant should be here and commissioned at the mine in Chiredzi early next year,” he said.

He said the commissioning of the plant would increase coal production at the Chiredzi coal mine from 5 000 tonnes per month to 15 000 tonnes.

“Currently, we are producing 5 000 tonnes of coal a month. And as we move forward revamping coal production at the mine, the machinery is expected to increase production levels to 15 000 tonnes a month and progressively we are targeting to produce 1 million tonnes annually,” he said.

Mr Johnson said his firm was incurring high costs of production when extracting coal due to unavailability of electricity at the mine.

He revealed that they were in discussion with Zesa so that electricity was supplied at the Chiredzi mine.

“We have applied for electricity from Zesa and today (yesterday) we are meeting the power utility’s chief executive, Engineer Ben Rafemoyo, for discussions on power supply at the mine. We are incurring high costs of production in coal mining because we are using a diesel-powered generator in coal mining operations.”

Various grades of coal are being extracted from claims covering 222 000 hectares and the products are used for a variety of applications that include steam generation and metallurgical processes.

Meanwhile, Mr Johnson said the price of coal on the market was favourable. “Coal price on both local and export markets is favourable and thus we will also focus on penetrating foreign markets as we increase our production levels,” he said.