Makomo Resources resumes operations, eyes export market

BUSINESS REPORTER

 

Two years after being placed under receivership, struggling coal miner Makomo Resources has resumed operations and is now eager to supply the export market,Business Times can report.

Bulisa Mbano of Grant Thornton Zimbabwe Chartered Accountants is the lead administrator of Makomo Resources.

Prior to 2021, when Makomo was placed under receivership—a form of bankruptcy protection—due to operational and financial difficulties, the resources company was Zimbabwe’s largest coal miner.

The rehabilitation of a struggling business is made easier by receivership.

Zimbabwe’s coal producers had been crippled by a lopsided pricing structure and a shortage of foreign currency, among many other problems.

Hwange Colliery Company Limited (HCCL) is another coal miner that has been placed under receivership. Dale Sibanda of Grindale Engineering is in charge of running the affairs of HCCL, with assistance from Mutsa Jean Remba, the managing partner of Dube, Manikai, and Hwacha, and Munashe Shava, the COO of Great Dyke Investments.

The director of Makomo Resources, Raymond Mutokonyi, told Business Times this week that the coal miner had resumed operations last month and had signed a contract with the Zimbabwe Power Company (ZPC), a power generation unit of ZESA Holdings, to supply coal to the  country ‘s largest coal-fired power plant, Hwange Power Station, whose Units 7 and 8 were just recently connected to the national grid. A total of 600 megawatts are being added to the national grid by the two units.

According to Mutokonyi, the production model at Makomo is now based on demand.

“We reorganised ourselves and resumed operations a month ago,” Mutokonyi said.

He said that while the company was focused on serving the market, it was also eager to expand supplies to foreign customers.

According to Makomo Resources, the ongoing corporate rescue plan has been successful in bringing the miner back to life.

The company’s lead corporate rescue practitioner, Mbano, recently released a statement in which he claimed that the ongoing corporate rescue proceedings had made significant progress toward ensuring the sustainability of the business operations into the future.

Makomo, which is located southeast of Hwange town and has been in operation for more than ten years, along with HCCL  and  quickly became one of Zimbabwe’s top coal producers.

Additionally, the company has a sizable local workforce and has made significant contributions to local development through a number of corporate social responsibility initiatives, such as providing access to water, constructing schools, and helping the most vulnerable members of society with basic necessities.

 

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