- Category: Stories
- Published on Thursday, 23 December 2010 14:59
- Written by Charles Rukuni
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Troubled Wankie Colliery saw its net profit increase marginally from $284.6 million in 2001 to $323.5 million last year, but in inflation adjusted terms it made a loss of $5.6 billion, slightly down from $5.5 billion the previous year.
Though total coal sales were down from 3.8 million tonnes to 3.4 million tonnes, turnover rose from $4.8 billion to $8.4 billion. Operating profit, however, plummeted from $244.5 million to $33.8 million.
The company was saved the blushes by a hefty interest income which shot up from $139.7 million to $434.1 million.
Normal coal sales were down by 13 percent from 1.4 million tonnes to 1.2 million tonnes. The company attributes this to machinery breakdowns and the failure by the National Railways of Zimbabwe to provide adequate wagons.
It says the NRZ only provided it with 66 wagons a day instead of 150.
Power station coal sales were down by 5 percent from 2.3 million tonnes to 2.2 million tones, the main problem being operational problems due to lack of foreign currency and the below cost price of the coal.
Coke sales were down by 9 percent while coke oven gas sales declined by 10 percent.
The colliery says though The Zimbabwe Iron and Steel Company (Zisco) paid $1.5 billion towards its debt it still owed $1.8 billion at the end of the year.
The company is also worried about price controls as wages have gone up by 120 percent.