‘CRIPPLED’ MOPANI LOSING $3M DAILY

Tue, 22 Aug 2017 10:30:56 +0000

By Jossy Chaima

MOPANI Copper Mines (MCM) has been losing $3million per day due to power reduction, Energy Minister, David Mabumba disclosed in Kitwe yesterday.

The minister has since directed MCM and Copperbelt Energy Corporation (CEC) to settle their differences on electricity supply to the mining firms by the end of the week.

He said this after a closed door meeting with the two companies. He said for power to be restored MCM needs to agree with CEC at what tariff structure they are willing to accept as an interim measure.

Mr Mabumba said MCM and CEC have to negotiate and provide the power company with an interim tariff structure, subject to them engaging in further negotiations.

He said if the increment was below 51 percent, it would provide the mine with an operational platform and the ability to manage their costs.

”Mopani says the 9.3 cents per kilowatt is quite huge and that in terms of increment it is 51 percent and if it is somewhere below that, it would provide them with an operational platform so that they are able to manage their costs,” Mr Mabumba said.

“We hope between MCM and CEC they will be able to engage in good faith negotiations so that we are able to move this country forward, we don’t want to lose jobs on the Copperbelt and we have suppliers depending on the survival of the mines,” he said.

The minister, who was accompanied by Copperbelt Minister, District Commissioners and mayors from Kitwe and Mufulira, said Mopani has complained that the 9.3 cents per kilowatt is a huge increment for the mine.

He added that he was hopeful that the meeting between the two parties will be in good faith so as to move the country forward.

Mr Mabumba said power supply has reduced at Mopani from about 130 megawatts to 94 megawatts forcing the mine to shut down some of its units and sending miners on leave.

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