Zambia’s already tenuous relationship with mineral firms is getting
more fragile with news that the government plans to cut electricity supplies to
mining companies.
Zambia, Africa’s second-biggest copper producer, announced its
intention to cut electricity supplies to mining companies by as much as 16
percent because of a shortage, according to state-owned electricity producer
Zesco Ltd.
Zesco will reduce power to Copperbelt Energy Corp, which supplies
almost all mines in the southern African nation, by as many as 240 megawatts
daily.
The news was delivered through a Zesco letter sent to mining companies
last week, which was then leaked to the press.
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| Zambia's electrical infrastructure (seen above) |
Zambia has the capacity to generate about 2,200 megawatts of power, of
which copper producers consume about two-thirds.
The amount of electricity that’s being rationed would be the largest
in at least four years.
Zambia is facing a 560-megawatt deficit after reduced rainfall led to
a decline in water levels at the hydropower plants it relies on for more than
90 percent of its generating capacity.
Last week, Zesco asked mining companies to cut usage because of the
shortage, and began daily rolling cuts to households and businesses that last
eight hours.
Any impact on Zambia’s copper output may cause economic growth to slow
further after the government already cut its forecast to 5.8 percent this year
from more than 7 percent.