Chidhakwa Threatens To Fire Hwange Colliery Management
31 January 2016
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Mines and Mining Development Minister Walter Chidhakwa has directed Hwange Colliery Company management to cut their salaries and pay 30 months outstanding workers’ salaries.
According to the state media Chidhakwa read a riot act to the ailing Coal mining company’s management at the weekend before giving them a three months ultimatum to either deliver or resign.
At the meeting which Chidhakwa addressed together with his deputy Freddy Moyo the two told the loss making parastatal to establish   new turn around strategies.
The strategies include 50% cuts in salaries and all allowances for management to reduce the proportion on money used in the payment of wages.
The government also ordered a reduction in managerial positions from the 13, who currently report to the CEO.
“Government has committed itself to securing funding from two banks, to support working capital and other activities in the mining company but the management is required to have a business model that works to enable them to resuscitate the underground coal mining activities,” said  Chidhakwa.
Despite the fact that production levels fell to a record low of 70 000 tonnes per month, the Board Chairman, Mr Jemester Chininga, said the company will have reached its production target of 300 000 tonnes per month by mid-March.
Hwange Colliery Company has been facing a myriad of challenges ranging from dealing with faulty equipment imported from Belarus and India, erratic fuel supplies and payment of workers’ outstanding salaries for 30 months.