US embassy cable - 03HARARE643

UNCLAS HARARE 000643 
 
SIPDIS 
 
STATE FOR AF/S 
NSC FOR SENIOR AFRICA DIRECTOR JFRAZER 
USDOC FOR 2037 DIEMOND 
PASS USTR ROSA WHITAKER 
TREASURY FOR ED BARBER AND C WILKINSON 
STATE PASS USAID FOR MARJORIE COPSON 
 
E. O. 12958: N/A 
TAGS: EMIN, ECON, EINV, ETRD, ZI 
SUBJECT: No Coal/No Power 
 
Ref: Harare 79 
 
1. Summary: Aged machinery at Zimbabwe's coal miner 
constrains output and, ultimately, domestic energy 
generation.  End Summary. 
 
2. In January we reported that most of Wankie's haulers, 
dump trucks, rope shovels and front-end loaders were 
grounded, causing the strategic company to undersupply 
Zimbabwe's largest power station (ref).  The Operations 
Manager at Barzem, Zimbabwe's sole Caterpillar dealer, 
provides further insight.  Caterpillar machines at Wankie 
are already 20-23 years old.  The Barzem rep complained 
that mechanics have been "patching up" machines that 
Wankie should long since have retired.  In spite of the 
tough business climate, the rep has reluctantly turned 
down new repair orders from Wankie.  He said his company 
could no longer take responsibility for fixes to 
antiquated equipment.  Even when machines are operable, 
their outdated technology causes Wankie to overpay for 
each ton of extracted coal (by 2003 standards), making 
the miner less competitive. 
 
3. Comment: As a critical cog in Zimbabwe's economy, 
Wankie bears watching.  Hwange Power's low output, due to 
erratic coal supplies, heightens Zimbabwe's dependence on 
unaffordable imported South African and Mozambican 
energy.  Parastatal ZESA is increasingly rationing energy 
(load-shedding), a consequence of Wankie's inability to 
pay for updated machinery.  Undeniably, the 
infrastructure that underpins Zimbabwe's once-enviable 
economy is crumbling. 
 
Sullivan