Africa wins again...
Posted on 09/24/2006 9:23:57 AM PDT by BenLurkin
HARARE, Zimbabwe (AP) -- Drastic coal shortages despite massive natural deposits have had a ripple effect throughout Zimbabwe's economy and ruined a deal to renovate the country's biggest steelworks, the government has acknowledged.
The energy crisis adds to the economic woes of Zimbabwe, which is already suffering from acute shortages of many basic commodities.
Industry Minister Obert Mpofu told a panel of lawmakers in Harare recently that Indian steel maker Global Steel Holdings pulled out of an investment deal at the Zicosteel steelworks in central Zimbabwe because of concerns about lack of coal supplies.
The steel maker needed 60,000 tons of coal a month but earlier this year received just 14,000 tons monthly -- "enough to keep the furnaces on, but without production," Mpofu told a parliamentary inquiry at a hearing Wednesday.
Zicosteel was once prosperous but has declined because of mismanagement and corruption and is now on the verge of collapse.
In its latest company report available Friday, main coal producer Hwange Colliery said coal mining declined from 1.4 million tons last year to 883,000 tons so far this year. It blamed shortages of equipment and spare parts, breakdowns of existing machinery and what it called "cash-flow challenges" in buying new materials.
Zimbabwe has estimated reserves of 30,000 million tons of coal, according to geological studies. The deposits are the biggest in quality coal in southern Africa.
Daily power outages in homes and industries have been worsened by the closure of coal-fired generators across the country. Zimbabwe imports 40 percent of its power from its neighbors.
The broke state railroad company, also suffering breakdowns and shortages of replacement equipment, failed to deliver available local coal to industry and business. Even brewers in Harare say they were forced to import coal by road from neighboring South Africa at three times the cost in scarce hard currency to keep their boilers fired up.
Lager beer prices rose by nearly 50 percent this week, the latest in almost monthly hikes this year that turned many impoverished Zimbabweans to traditional home brews.
Zimbabwe is suffering record inflation of 1,200 percent, the highest in the world, in its worst economic crisis since independence in 1980 blamed on land seizures, mismanagement and corruption.
Bread disappeared from most shelves last week after the government ordered bakers to slash their prices. At least six senior executives of food and food-related companies were arrested for allegedly overcharging on their products.
Bakers argued soaring prices of ingredients, packaging and coal as well as gasoline and wheat shortages forced them to increase prices to stay in business. The Bakers Association said members had imported South African wheat for more than double the local price in efforts to keep at least some production lines rolling.
Managers at one Harare bakery said a cycle of 19 round-the-clock daily bakes was routinely disrupted, spoiling dough already in the ovens, due to power outages affected by the closure of a nearby state-owned coal-fired power facility.
Another success story for socialism.
Of course the UN is right on top of this situation. /tagunnecessary
The fruits of socialism.
Africa wins again...
Well, why don't they just seize the coal mining operations and hand them over to Mugabe cronies? I'm sure usable coal will then magically appear and distribute itself for free. Look how well this worked in agriculture, after all.
This is not socialism. Even socialism would do a better job than this.
They need one good man with a good rifle.
You are correct, Socialism can't be this bad. What do you suppose the problem is? Zimbabwe, South Africa, Sudan, Chad, Nigeria, King/Drew, Washington DC school Dist., Compton Jr. College, Oakland school Dist., on and on.
Laughing just to keep from crying placemarker.
I know rhetorical when I see it, but surely there is a lesson? Remaining comments censored.
It's America's fault, somehow.
I had a friend ( who is white) that grew up rich in south africa. His family farm was 60 miles square. Vast holdings of land, cattle, wheat, etc. He grew up with the son of one of the farm hands who was black. They were great friends. One day when they were 20 his friend said to him, "when we take all this back from the whites you will not have to pay for anything, if you want gas you will just go to the gas pump, you will just go into the grocery store and take whatever you want off the shelf."
My friend Brian said, "and who will fill the peterol tanks of the gas station and who will stock the shelves?" His friend looked puzzeled " what do you mean?" He didn't believe my friend Brian when he told them oil is refined into gas then that gas is purchased by the station and delivered and pumped into tanks below the station. He also did not understand that all those cans of food don't magically show up on the shelves of the store. This total abyss of ignorance stunned my friend Brian since this kid had grown up on the very farm he did, worked to produce some of the same things in that go into the stores and he couldnt fathom that.
I think you see that in zimbabwe with Mugabe taking away all the "white owned farms" and giving the land away. THere was absolutely no thought of reprocussions of taking away the land of generations old productive farms and giving it to people that may have never farmed in thier lives...
You can not solve a problem unless you first admit that there is a problem.
I'm reminded of North Korea where the Chinese used their railroad to ship relief supplies to NK and the North Koreans won't return the trains.
This is news. Zimbabwe has coal. Who knew?
Zimbabwe must be competing with Cuba for the title of most failed socialist economy of the 21st century.
Yeah, that PRNK trick with the trains was so dumb, it was funny.
What goes around, comes around.
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