The announcement has meant Wankie Colliery Company will be able to continue to provide coking coal for domestic consumption and to the new 3 Main Underground Mine plant. The new mine will take over from Wankie’s current M-Block mine scheduled to shut in June 2004.
The development is the one shining light on the horizon for Wankie, who have been hit hard by the country's extreme economic circumstances.
The company was recently forced to shut down its production through equipment failure and is currently operating at an estimated capacity of 50%, caused by the incapacity to buy spare parts and the inefficient transport of its coal by the country's National Railways of Zimbabwe company.
The Wankie company recorded a loss of nearly US$7m in 2002 with turnover down from $15.87 billion to $4.8 billion. Losses were mainly due to government price controls on coal and coke. The restrictions have now been lifted, with the products instead being placed on price-monitoring schemes.
About 85 percent of WCC's coal is extracted from the open cast mine, while underground mining contributes 15 percent.
