Zambia's Chambishi copper smelter scales back capacity amid power cuts, sources say

China Nonferrous Mining

11/03/2024 10:30

By Julian Luk and Chris Mfula
       LONDON/ LUSAKA, March 11 (Reuters) - China Nonferrous
Metal Mining Corp's  1258.HK  Chambishi Copper Smelter in Zambia
has cut one-fifth of its production due to power shortages in
the country, two sources with knowledge of the matter told
Reuters.
    The plant, which produces about 250,000 metric tons of
copper per year, is one of the biggest processing facilities in
Africa's second-largest copper producer. 
    Zambia generates about 87% of its electricity from
hydropower, and lower water levels due to its current drought,
the worst in two decades, have curbed power generation, the
managing director of state-owned power utility Zesco said.
    Zesco said last week it would start rationing electricity
supplies from March 11. However, the sources said that Chambishi
had already reduced capacity as of last week.  
    CNMC did not immediately respond to emailed questions on the
matter. The company is now considering plans to install diesel
generators at the plant to help alleviate the impact of power
shortages, according to the sources.
    The power shortage comes amid a gradual decline in Zambia's
copper production due to lack of new investment at some
operations, including Konkola Copper Mines and Mopani Copper
Mines. 
    Output of the metal slumped to about 698,000 tons in 2023
from 763,000 tons the prior year, according to data from the
Zambia Chamber of Mines.
    Some of Zambia's smaller producers may also be affected by
the power shortages, though its still too early to calculate the
overall impact on production, the sources said.  
    The utility plans to meet mining companies on March 14 to
discuss ways it could "claw back" about 250 megawatts or 20-25%
of supplies, managing director Victor Mapani told journalists in
Lusaka last week.
    The Zambezi River Authority (ZRA) has reduced its allocation
of water for electricity generation to Zambia and Zimbabwe to 16
billion cubic litres currently from 30 billion in 2023 and 40
billion in 2022, Mapani said.

 (Reporting by Julian Luk and Chris Mfula; Additional reporting
by Felix Njini; Editing by Jan Harvey)
 ((julian.luk@thomsonreuters.com; Reuters Messaging:
julian.luk.thomsonreuters.com@reuters.net))