Zvamaida Murwira, Harare Bureau
MINES and Mining Development Minister Winston Chitando argued yesterday the government's decision to take Hwange Colliery Company under the control of a manager, because there was no expectation of a return between rising debts.
Hwange stated that the Colliery Company has continued to give losses, despite a strategic plan for predicting profit margins.
Minister Chitando said this while providing oral evidence before the Parliamentary Portfolio Commission on Mining and Energy, headed by Norton Deputy Temba Mliswa.
Last week, the government prevented further deterioration of the wealth by taking the Hwange Colliery Company under the control of a manager in terms of the reconstruction of the state's Borrower Companies and Bankruptcy Act.
Ery The story of Hwange Colliery Company is very sad. If you look at the results of Hwange, the biggest problem is the gross loss. No matter what the cost of your income,, said Minister Chitando.
In the year of 2016 Hwange Colliery, in the period of 2018
Minister Chitando said Hwange has harmed himself for several years.
Tur Therefore, if this world is basically costing more than your income, there is no business to do. Who pays you for this price? In the period from January to December, Hwange made a profit of $ 1.3 million, the first, but noted a net loss, because then there was a series of interfering measures. In January-June 2018, things went crazy; Now we had a basic problem. This gave signs of warning that the Government has had problems as a shareholder. There is evil now,, said Minister Chitando.
The legislators asked why they did not consult adequately like other shareholders and other shareholders before making a decision.
The questions asked whether the rebuilding of the coal miner would have led to the failure of the external inspection of the board.
Minister Chitando said the judicial review would continue and the results would be made public.
He said the decision to place Hwange as an administrator was to halt further deterioration. He said the government wants the Hwange Colliery Company to return to profitability.
In the projection of the board, Hwange said that $ 269,000 in 2018, $ 39 million in 2019, $ 54 million in 2020, $ 59 million in 2021 and $ 70 million profit .