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ZESA’s failure to pay coal producers on time has “heavily incapacitated” them as they can no longer have working capital.
ZESA’s four thermal power stations, Hwange, Harare, Munyati, and Bulawayo are not operating at full capacity due to coal shortages.
According to Coal Producers Association (CPA) chairman Linos Masimura who is also the managing director of Zambezi Gas, the miners had become so incapacitated “to even fail to load the trucks.”
Three companies namely Zambezi Gas, Turbo Mine, which is mining in Hwange western areas, and Hwange Colliery Company Ltd are supplying coal to thermal plants. Said Masimura:
<blockquote>
We haven’t been paid for four or so months and the viability of producers is now severely eroded; they (ZESA) have basically taken all our working capital.
</blockquote>
Masimura said coal miners were capable of supplying ZESA’s coal requirements for all plants. He said:
<blockquote>
But it is now a matter of them paying and collecting. They are collecting revenue from their consumers but they are not paying us. Why?
</blockquote>
In an interview with Business Weekly, ZESA executive chairman Sydney Gata confirmed owing the coal miners. He said:
<blockquote>
At all times, there is always a balance to be paid but the problem with some of the coal producers is that they can’t even wait for two weeks to get paid.
</blockquote>
With Hwange Unit 7 expected to come online in the next few weeks, according to official timelines, concerns have been raised over the adequate availability of coal.
Masumura complained that contracts to supply coal for Unit 7 were awarded only to two companies, namely Turbo mine, linked to businessman Billy Rautenbach and Hwange Colliery Company Ltd. He said:
<blockquote>
Some of our members had expanded capacity in preparation for units seven and eight but sadly, only two producers were awarded the contracts.
We formally raised the dangers of risk concentration, especially when dealing with a project of national significance.
</blockquote>
Meanwhile, Makomo Resources, which is now the country’s largest coal miner, is facing serious viability challenges and is under corporate rescue. | <a href="https://www.businessweekly.co.zw/electricity-waiting-for-the-rains/">Business Weekly</a>

Pindula News

ZESA Fails To Pay Coal Suppliers

Its a case of “when it rains it pours” for both Hwange Coal Mines and Zimbabwe as coal miners are saying the dewatering process might take more time since ZPC has not paid them for the coal they supplied the plant to be used to generate electricity, The Herald reports.
The floods that hit Hwange on Saturday flooded coal mines and they need money to dewater the mines, and <a href="https://www.pindula.co.zw/Zimbabwe_Power_Company">ZPC</a> has not paid them, which has grounded <a href="https://news.pindula.co.zw/2020/01/20/hwange-power-station-affected-by-the-floods-no-electricity-is-being-generated-at-the-plant-chasi/">power generation at the coal mining town to  0 MW</a>.
Speaking to the publication, Coal Producers Association (CPA) chairman Mr Raymond Mutokonyi said:
<blockquote>It is a disaster in terms of coal mining, as the pits are flooded.
The situation is made worse by the fact that the de-watering process is expensive and most coal miners do not have money to undertake this mammoth exercise since the Zimbabwe Power Company (ZPC) is not paying us for coal supplied
Coal miners are owed in excess of $100 million by ZPC as at January 10, 2020, but we have supplied more coal since then and the figure is now over $100 million. All mines are affected and we hope to start the process of de-watering on Monday (today)</blockquote>
More: <a href="https://www.herald.co.zw/floods-threaten-power-supplies/">The Herald </a>

Hwange Coal Mines Flooded, ZPC Not Paying The Miners On Time Will Slow Down The Dewatering Process - CPA

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