Zimbabwe: Hwange Colliery to Pay $5bn to Coal Merchants

Source from:  The Herald (Harare) 6 September 2007 09/07/2007

HWANGE Colliery Company Limited has indicated that it will pay back about $5 billion to coal merchants who had made advance coal payments. "The balances have been calculated using interest accrued based on bank deposits up to August 2007," HCCL spokesperson Mr Clifford Nkomo said in a letter to about 50 coal merchants yesterday. The coal miner had indicated that it was not in a position to supply coal to merchants as it was facing operational constraints. "We have our operational constraints and we are unable to supply them with coal," Mr Nkomo said in a previous interview. However, the letter did not mention how much coal the merchants had ordered. Coal supplies to merchants were suspended in mid-July at the height of the Government's price blitz with HCCL accusing the middlemen of fleecing the end-users, among them industry, tobacco farmers and hospitals. HCCL managing director Mr Fred Moyo, on taking over the hot seat at the coal mining giant in July, insisted there was no going back on the ban. The refunds seem to confirm that this is indeed the end of the road for coal merchants, who have vehemently denied overcharging. In defending their prices, the coal merchants said they were simply passing on the high cost of road transport to the end-users. Enditem