A nationwide power blackout on Friday forced copper mines in Zambia, Africa’s top producer of the metal, to halt output, but the country’s energy minister said electricity supply could resume later in the day.
A fault at a hydro power station triggered the first national blackout to engulf the southern African nation since June 2009, which cost copper producers millions of dollars in lost revenue and dented their copper output. [ID:nLG31563]
Power blackouts are frequent in Zambia, and have been a big concern for the chamber of mines and for foreign mining companies who own most of the key mines in the country’s copperbelt province.
“Power has been restored in Lusaka and we are now moving on to restore power on the Copperbelt,” Energy Minister Kenneth Konga told Reuters.
It was not immediately clear how much production was affected. Maxwell Mwale, Zambia’s mines minister, said he would give a detailed comment on the power blackout’s impact later.
“Production at the mines is affected …I am yet to receive a full report from the minister of energy,” Mwale told Reuters.
An official at Zambia’s biggest copper producer, Konkola Copper Mines (KCM) — majority owned by London-listed Vedanta Resources Plc (VED.L: Quote) — said its operations had been affected, but the group would issue a detailed statement later in the day.
Sydney Chileya, a spokesman for the Luanshya Copper Mines, owned by China Non-Ferrous Metals Corp. (CNMC), said only limited power supply was available.
Frequent power stoppages are likely to affect Zambia’s plans to increase its copper production to 1 million tonnes next year, from just below 700,000 tonnes in 2009, analysts said.
The country has been trying to entice new investors to the sector as demand for the metal increases.
“It also sends wrong signals to investors on availability of energy despite assurances by the government,” Chibamba Kanyama, a member of country’s main economic think-tank, the Economics Association of Zambia, said.
Foreign mining companies operating in Zambia include Canada’s First Quantum Minerals (FM.TO: Quote), London-listed Vedanta Resources Plc (VED.L: Quote), Equinox Minerals EQN.TO)(EQN.AX: Quote), Glencore International AG [GLEN.UL] of Switzerland and Metorex (MTXJ.J: Quote) of South Africa.
PRICES
Copper prices appeared unaffected by news of the blackout, remaining at a one-week low on Friday as investors overlooked increased risk appetite in the wider markets and remained concerned about demand prospects after weak data from the U.S., the world’s largest economy. [ID:nLDE6370XM]
Lucy Zimba, a spokeswoman for electricity utility Zesco, said the cause was due to a fault on a circuit breaker at the country’s Kariba North Bank hydro station, which set off a chain reaction that led to the countrywide blackout.
Zimba said power supply had been restored to parts of the capital Lusaka, and supply to copper mines would follow.
“The blackout was caused by a fault on a circuit breaker at Kariba North Bank (hydro power plant). We are working on the problem to restore power in Lusaka, after which we will try to switch on the Copperbelt lines,” Zimba told Reuters.
The Copperbelt Energy Corp. (CEC), which buys the electricity from Zesco to supply Zambia’s copper mines, said it would try to provide power to the mines for emergency operations through imports from the Democratic Republic of Congo.
Zesco has said it needs higher tariffs and additional funds to invest in new generating and transmission infrastructure, and the country has said it plans to invest about $6 billion in the next five years to meet its projected energy needs. (Writing by James Macharia; editing by Sue Thomas)
[Reuters]
so this nationwide power thing is true. Just saw it on face book. mama:-?
What a wasted day!!! For Lucy Zimba to say it was a problem with a circuit that have caused ZESCO to black us out is a real joke. If a circuit had a problem what caused that, overload of course. People have said it before and I will say it again, let ZESCO issue loan notes and recapitalize its infrastructure. These can be done through Bank of Zambia and GRZ. Let us find out how RSA managed to get a loan from the World Bank for its ESCOM support. Depending on tariff hikes would just increase the number of defaulters and on the other hand it is a short term measure for ZESCO as it is meant to sort out their operational costs push opportunities for politicians.
What a country!
Bwezani and family, Siliya, Musokotwane and Mutati why not privatise Zesco…RP Capital, business yamoneka apa!
Reposted with corrections
What a wasted day!!! For Lucy Zimba to say it was a problem with a circuit that had caused ZESCO to black us out is a real joke. If a circuit had a problem what caused that?Overload of course. People have said it before and I will say it again, let ZESCO issue international loan notes and recapitalize its infrastructure. These can be done through Bank of Zambia and GRZ. Let us find out how RSA managed to get a loan from the World Bank for its ESCOM support. Depending on tariff hikes would just increase the number of defaulters and on the other hand it is a short term measure for ZESCO as it is meant to sort out their operational costs and push through opportunities for politicians. 2011 is coming, do not forget that.
as we speak there are miners stuck underground. From 11am this morning till now. ZESCO please get your act together. This is a horendous situation
MMD hs been blocking CEC and Lunsemfwa from going national. If these 2 were allowed, am sure we would all ditch Zesco and the MMD would have no easy source for campaign money.
20 years of MMD rule for you.
This is unbelieveable , the way i know this country, to ve a blackout nimaloza, dont become likTZ,:o:o:o:o:o:o:o:o:o:o:o:o:o:o:o:o:o:o, I dont understand yu know we poor inocent pple underground nd there is no electricity its a dame shame, in other countries the Minister concerned should ve resigned 2day.%-(%-(%-(%-(%-(%-(%-(%-(%-(%-(%-(%-(%-(%-(%-(%-(%-( headache.
You mean it has been 20 years since MMD’s reign? Wow I think it’s time to say bye bye to the. Honestly we cant get any worse.
Lucy resign plse????????????????????:o:o:o:o:o:o:o:o:o:o