Published by the government of Zimbabwe
20 February 2004
Harare — PROBLEMS in the coal sector are far from over with coal merchants still pushing for a reduction in transport costs by the National Railways of Zimbabwe.
It had been hoped that the 15 percent price slash by Wankie Colliery Company at the beginning of the week would solve the problems that have afflicted the sector for some time now.
Coal has been charged at around $800 000 by the coal merchants a figure considered too high by users.
However, it has emerged that there would only be an slight change to the prices of coal following the reluctance by NRZ to decrease its charges, preferring only to reduce the figure from $300 000 to $280 000 per tonne for coal transported for agricultural purposes only .
"We have been engaged in a series of talks with NRZ but they said they were not going to reduce the transport charges.
"They (NRZ) said they would only reduce the transport charges from the current $300 000 per tonne to $280 000 per the same weight which we said was still too high for us to effect significant changes," said one of the coal merchants.
Coal merchants were arguing that the reduction effected at the source would come to naught if there were no similar changes along the supply chain.
"We have told them that anything above $200 000 per tonne would not be beneficial to the entire industry," said the merchant.
Some of the merchants have also accused NRZ of failing to deliver the coal which was loaded sometime last year.
It has also emerged that road haulage has now become cheaper than railway as it now costs between $250 000 and $300 000 per tonne.
There has been a crisis in the coal industry following a sharp increase in the price of the commodity which is the cheapest source of energy for many industries.
At least 60 percent of the coal produced at Hwange is used for electricity generation while other sectors of the economy, particularly the iron and steel and tobacco curing absorb a significant amount.
Wankie recently effected a 15 percent reduction of prices for dry coal, washed peas and washed coal.
A tonne of dry coal now costs $166 272,75 down from $195 615, while that of washed peas was reduced to $188 924 from $222 264. Washed coal was reduced by $31 299 to $177 357.
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