Government doing everything it can to save Hwange Colliery


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The government is doing everything it can to assist Hwange Colliery Company by funding, restructuring the balance sheet and assisting with creditor support, the deputy Minister of Mines Fred Moyo said this week.

Responding to a question from Hwange East Member of Parliament Tose Sansole on what could be done to compel companies in which the government was a major shareholder to pay their employees on time, especially those at Hwange Colliery; Moyo said the biggest challenge for mining companies at the moment was the collapse of commodity prices.

“Government is specifically trying to assist Hwange Colliery Company as much as they can by funding, restructuring the balance sheet, assisting with creditor support and we hope that the company will soon pull out of its quagmire. Everything is being done to assist and we feel for the workers but we hope that we will resolve the issues soon,” he said.

 

Q & A:

 

MR. SANSOLE: Thank you Madam Speaker. My question is directed to the Minister of Mines and Mining Development. I would like to know from the Minister if there is any mechanism which can be used to compel those mining companies where Government is the majority shareholder to meet their obligations in terms of paying salaries and wages to their employees on time, a case in point is at Hwange Colliery Company. Thank you.

THE DEPUTY MINISTER OF MINES AND MINING DEVELOPMENT (MR. MOYO): Thank you Madam Speaker. I think the hon. member asked a very important question or is pointing to a very important issue, one of the abilities by our companies to meet their obligations to pay their employees. I think all companies would like to pay their employees on time and hopefully reasonably. The companies that are failing to pay employees at the moment come from both those that are strictly private as well as where Government has got a shareholding. We are doing the best we can as Government and certainly as the Ministry, to try and assist those companies that are in distress so that they remain afloat and they are able to pay their workers as well as their creditors.

I hope that we are able to resolve the challenges that are facing mining companies. I think the biggest challenge Madam Speaker is one of the commodity price collapse as well as the ill performing infrastructure that is servicing the mining industry. Government is specifically trying to assist Hwange Colliery Company as much as they can by funding, restructuring the balance sheet, assisting with creditor support and we hope that the company will soon pull out of its quagmire. Everything is being done to assist and we feel for the workers but we hope that we will resolve the issues soon. Thank you.

(166 VIEWS)

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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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