Zimbabwean Deputy Mines Minister Fred Moyo on Wednesday said Hwange Colliery Ltd., a partly state-owned coal miner, plans to cut 1,500 jobs this year to make it more viable and has put measures in place to protect it from lawsuits.
Hwange Colliery Ltd is the southern African nation’s second-largest coal producer and supplies coke to state-owned electricity generating firm Zimbabwe Power Company.
The country has a 37 percent stake in the company.
Fred Moyo told parliament that Hwange, would cut overheads, trim its workforce and has set a meeting with creditors next month.
“Hwange’s labor force is 3,000 and about 1,500 are going to be laid off to make the company remain viable,” Moyo told lawmakers on Wednesday.
Hwange chief executive Thomas Makore said on Thursday approval for the scheme was granted in the first week of June.
He said the High Court had approved a scheme by Hwange that would suspend all litigation against the company from creditors who are owed $160 million.
Zimbabwe imports about 350MW from regional producers to cover the energy supply gap.
The decrease in coal deliveries has been attributed to a slump in production by Hwange Colliery Company.