Copperbelt Energy Corp (CEC) has confirmed that it has restricted the amount of electricity it supplies to Glencore unit Mopani Copper Mines (MCM) because of a dispute over tariffs.
Mopani said on Saturday that it has suspended operations in certain areas after CEC restricted power supply to its mines in both Kitwe and Mufulira.
The government in April proposed introducing a flat tariff of 9.30 U.S. cents/kilowatt hour (kWh) backdated to January for mining companies, instead of individually negotiated rates that have averaged 6 U.S. cents/kWh, but mining companies opposed the plan.
“To date, MCM has rejected the industry-wide tariff increment and sought to continue to pay for the electricity they consume at the old tariff,” CEC spokeswoman Chama Nsabika-Kalima said.
She said under the circumstances, CEC was left with no option but to restrict power supply to MCM to a level commensurate with the monthly payments that MCM continues to make to CEC.
Mopani owns the Mufulira underground shaft, the Nkana underground shaft, South Ore Body shaft and the Mindola shaft in Kitwe.
The Mopani group is busy in botswana arranging for a contractor to build a thermo power plant and arranging a south african contractor to mine the vast coal deposites in tswnaland. In three years they will wane themselves from CEC and get power directly from the plants in botswan, for now they will play monkey business for the next 3 years until plants are ready. CEC must know this and take strategic decisions now….Fore warned is for armed… Zambian in botswana
It’s only in Africa where these mining houses missbehaves. Here they pay high rates and all services are pretty much expensive but they afford.
Thanks the Sear. CEC need to take heed. Glencore are a bunch of thieves who are only here to milk this country and once they have done what they want they will disappear.
CEC should be tough on these looters…If ordinary Zambians are paying the new tariffs who are are they not to…If they don’t need the mines let them hand them back to Government and in turn the Government gives them to serious people including Zambians…Time for pleading for mining investors is long gone because they’re readily available…
Zakeyo – You people will be the ones crying when the mines close and there are no jobs ! The CEC, The government etc do not believe in negotiating the simply force things up us zambians and expect that we must obey.
Mopani should be buying power directly from ZESCO and not middle men like CEC. This federal arrangement is no longer feasible.If CEC want to sell power they should produce it themselves.
Zesco does not currently have the infrastructure to supply the power. Remember CEC is what used to be ZCCM Power Division with all the distribution infrastructure connected to the mines.
This is the high time we zambian should wake up and learn from the past mistakes. These so called investors they come here to milk us after they done they go, left our country with nothing, now Zambian they are living in fear. Mopani should go they have made enough,