All Africa reported the company’s loss was $5 billion or 90% more than that achieved during the same period last year.

"This was attributed to the untenable position the company found itself in, whereby, its prices were controlled yet supplier's prices were not controlled. Furthermore, critical and maintenance spares sourced from local suppliers were priced on the basis of parallel market exchange rates," the company told All Africa.

Wankie has been running at half capacity, but continued to incur similar costs as full capacity.

"The past six months continued to experience a decline in economic activity with annual inflation reaching a record level of 366,5% as at June 30 2003," it said.

"Foreign currency shortages, increase in borrowing costs, price controls, transport constraints and the devaluation of the Zimbabwe dollar against major currencies, affected the company's operations."