The Minister of Justice, Legal and Parliamentary Affairs has removed DBF Capital partner Beki Moyo as administrator of Hwange Colliery Company and has replaced him with Dale Sibanda.
Sibanda is the executive director of Grindale Engineering. He will be assisted by Munashe Shava, Great Dyke Investments COO and Mutsa Jean Remba, the managing partner of Dube, Manikai and Hwacha.
Hwange is currently under a controversial reconstruction, which was subject of a legal battle between Government and the board in 2018. The reconstruction order places control of the company under the management of the administrator while the board will be divested of the control of the company’s affairs.
The appointment was with effect from October 16, 2020.
Hwange is technically insolvent and has continued to post losses as its mining processes are generally more expensive. According to its recent financial results, the company continues to push for own mining in order to realise more revenue. It will spend US$17 million towards recapitalisation to push own mining. It posted a net loss position of ZWL$992m for the six months to June compared to a net profit of ZWL$3.5m for the same period in 2019 due to an exchange loss of ZWL$1bn on legacy foreign creditors