Hwange is the second largest coal producer and the Zimbabwe government owns 37% of the company. It also supplies coke to state-owned electricity generating firm Zimbabwe Power Co.
Reuters also reported that Fred Moyo, the deputy minister in the mines ministry, said Hwange, which has been making losses for more than a decade, would cut overheads, trim its workforce and has set a meeting with creditors for next month.
Moyo didn’t seen when the job cuts would happen, but the firm should have 2,000 employees.
A scheme by Hwange that would suspend all litigation against the company from creditors who are owed $160 million was approved by the high court at the beginning of June, according to Reuters.
Hwange produces 150,000 metric tons of coal a month and Moyo said the company was working to double the output by end of year.