A mining company in Zimbabwe riddled with rising debt and unable to pay its workers’ salaries dating back to five years is now considering selling the mining town it operates to settle its debts.
Local media in Zimbabwe is reporting that Hwange Colliery Company Limited (HCCL) wants to sell the town of Hwange for $300m.
The company needs $500 million capital injection to pay off its debts but due to challenges in raising such a capital injection, selling off its town has become an major option.
On Monday the board of the company met members of Zimbabwe’s parliamentary committee on mines to discuss the worrying situation in the mining town.
Ntombizodwa Masuku who is the chairperson of the technical committees on operations said “We have challenges with working capital; we need working capital because the equipment is obsolete.”
Meanwhile there are reports of shareholders planning to meet the company’s board to discuss possibilities of injecting fresh working capital into the company.