Zimbabwe’s coal firm Hwange plans to cut 1,000 jobs: deputy minister

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HARARE   – Zimbabwe’s Hwange Colliery Company is considering cutting a third of its 3,000 workforce as part of measures revamp loss-making coal miner, a government official said.

Hwange, in which Zimbabwe’s government is biggest shareholder with a 37 percent stake, is nation’s second-largest coal producer and supplies coke -owned electricity generating firm Zimbabwe Power Company.

Fred Moyo, deputy minister in mines ministry, told parliament on Wednesday that Hwange, which has been making losses for a decade, would cut overheads, trim its workforce and has set a with creditors next month.

The firm should have 2,000 employees, the official parliament , Hansard, quoted Moyo as saying on Wednesday.

Moyo did not when the job cuts would be effected.

The deputy minister said the Court had approved a by Hwange that would suspend all litigation against the company from creditors who are owed $160 million.

Hwange executive Thomas Makore said on Thursday approval for the was granted in the first week of June.

Moyo said Hwange would meet the creditors on July 14 find an agreement on how repay its debts.

Hwange produces 150,000 tonnes of coal a month and Moyo said the company was working to double the output by end of year.(Reuters)