ZESCO Muzuma substation being upgraded to KV 330 (from KV 220) in order to be connected to the national grid as soon as the Maamba coal plant station is commissioned
ZESCO Muzuma substation being upgraded to KV 330 (from KV 220) in order to be connected to the national grid as soon as the Maamba coal plant station is commissioned

Seven mining companies in North western and Copperbelt Provinces have started paying the revised electricity tariffs. These are Konkola Copper mines, Barrick, Luanshya Mines, Kansanshi, Chambeshi Mines and the Non-Ferrous mining Company among others. The Chambers of Mines has confirmed the development to ZNBC News.

And First Quantum Minerals Country representative General Kingsley Chinkuli says negotiations are currently under way with the Ministry of Energy over the revised tariffs. General Chinkuli says First Quantum Minerals the owners of Kalumbila and Kansanshi mines will issue a comprehensive statement on the matter today.

Meanwhile, stakeholders in the mining sector have urged Mopani Copper Mines to pay for the revised electricity tariffs to foster economic development and job creation in the Country. The Mine workers Union of Zambia (MUZ) says it fully supports Government’s calls on all mining companies including Mopani to pay the revised electricity tariffs to sustain national development.

MUZ General Secretary Joseph Chewe says there’s need for Mopani and Copperbelt Energy Corporation to put the interests of the Zambian economy and plight of workers first and reach an amicable solution on the impasse.

And the Mine Suppliers and Contractors Association of Zambia President Augustine Mubanga says ZESCO produces the power being sold to the Copperbelt Energy Corporation at a cost hence the need for Mining firms to pay the revised rates.

Meanwhile, Minister of Energy David Mabumba yesterday held talks with Mopani and CEC over the standoff between the two companies on the revised electricity tariffs and has given Copperbelt Energy Corporation(CEC) and Mopani Copper Mines up to last evening to settle their outstanding commercial differences on the new electricity tariffs.

Mr. Mabumba issued the directive after meeting officials from CEC and Mopani Copper Mine yesterday. Mr. Mabumba directed the two parties to go back to the negotiating table and re-negotiate the recent hikes in electricity tariffs adding that was urgent need for Mopani Copper Mines to resume its normal operations in the quickest possible time.

The Minister of Energy explained that MCM is of the view that the current hike in electricity tariffs by CEC is way too expensive and this has forced the CEC to restrict power supply to the mine.

Mr. Mabumba wants the two parties to find a way of resolving their difference by coming up with a payment system that will benefit the two parties.

MCM has sent hundreds of miners’ home following the commercial dispute and is losing 3 Million US Dollars daily following the restriction of power to the firm by the CEC.

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29 COMMENTS

  1. Come on mines, you pay low taxes, you pay low mineral royalties, your social responsibility compared to the mighty ZCCM is like a drop in the ocean, citizens have subsidized your electricity in both boom and burst times, we are now in the boom times if you look at coper prices. Electricity production is costing the citizens a lot of money to produce, can you please contribute your fair share, after you ate the biggest users of this product.

    I agree with the Minister, no reduction electricity tariffs for the Mines, but , indeed, a payment plan must be arranged so that they resume production. Mines should blackmail the country with their cheap jobs have they created

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    • LET US SCRAP THE BIGGEST SCAM OF CEC ACTING AS MIDDLEMAN.
      LET ZESCO SUPPLY ELECTRICITY DIRECTLY TO THE MINES TO REDUCE COSTS AND TAKEOVER THE SO-CALLED CEC INFRASTRUCURE WHICH IS REALLY A FEW TRANSFORMERS.
      WHO REALLY BENEFITS FROM THIS FULLISH ARRANGEMENT? AN INQUIRY IS NEEDED..

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    • MEANWHILE CONSUMERS AT LARGE WILL BE SLAPPED WITH ANOTHER TARRIF HIKE FROM 1 SEPTEMBER.
      AND CEC DIRECTORS WHO SOLD CEC TO THEMSELVES ARE SWIMMING IN UNTOLD WEALTH

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    • @1.2 and 1.3
      THE ELECRICITY SUPPLY CHAIN TO THE MINES IS A SCANDAL OF ENORMOUS PROPORTIONS WHICH GOVERNMENT SHOULD INVESTIGATE.

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    • @1.2 and 1.3
      THE ELECRICITY SUPPLY CHAIN TO THE MINES IS A SCANDAL OF ENORMOUS PROPORTIONS WHICH GOVERNMENT SHOULD INVESTIGATE.
      CEC ONLY DISTRIBUTES AND JUST COSTS AND REAPS WHERE IT DOES NOT SOW FOR THE BENEFIT OF A FEW DIRECTORS.
      REMOVE CEC AND ZAMBIANS WILL BENEFIT FROM LOWER ZESCO TARRIFS.

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    • Even before ZCCM, the privately owned mines RCM and NCCM did wonders: they built decent houses for miners, they built clinics in townships, hospitals, decent stadia, well equipped clubs, maintained roads and other infrastructure. They sponsored teams in all sports. For us miners children Saturday was a special day. That’s when we received free meals, milk and oranges at township clinics (Kumazalapwiti). They also built schools including such as Chikola Secondary School and others. In fact they did more than ZCCM which did more damage to most of things.

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  2. Its about time they did.Now rectify the other anomaly ,its unfair the poor in Misisi ,kamwala etc pay more for a litre of water in jerricans than those in Avondale,Kabulonga ,Northmead etc

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  3. I agree with the the Mine Suppliers president, they are putting the national electeicity supply.
    Let them pay or else reverse our 75% hike too!
    Or tell them to sell their mine to other interested parties.
    PAY or GET OUT!

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  4. I agree with the the Mine Suppliers president, they are putting the national electricity supply at risk.
    Let them pay or else reverse our 75% hike too!
    Or tell them to sell their mine to other interested parties.
    PAY or GET OUT!

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  5. it’s amazing that a company that makes $3 million daily has never paid corporate tax by claiming that it has always made loses

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  6. And look at that Richard Sakala and his Nation. He is splashing his ignorance across the front pages of his paper and spewing more ignorance in his editorials on a daily basis. I have serious doubts about his sanity and patriotism.

    Richard Sakala is approaching the levels of Mmembe’s sickness. Is he emulating the corruption of Mmembe? Or what is in it for Richard? That is how these guys start to fall.
    .

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  7. @5 Alehandra you are correct, and if MCM are losing 3 million US dollars with partial production, that is 90 million dollars monthly. Let them tell us how much of that goes to electricity, a paltry amount you will discover. Gone are the days of cheap subsidised power and we the ordinary citizens have come to terms with this. These mines should understand that electricity is the enabler and multiplier of all business activity including and especially mining, kill the electricity business and you are dead and buried, the nation with you.

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  8. Some mines are just arrogant. Their conduct is more like that of certain opposition entities to the Government but in this case to ZESCO. When one is used to HANDOUTS they become resistant to change requiring the removal of subject matter.

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  9. I dont think MCM’s failure to comply this far has got to do anything with its ability to pay. Having read through their statement of claim filed in the Kitwe High court against CEC, MCM are standing on firm grounds. The reason which the high court judge even gave them that injunction against CEC. MCM contends that there is a process that has been agreed between them and CEC which the energy company must follow before applying the new tariffs. Why didnt CEC follow this process? For me this issue comes back to the people we have entrusted in negotiating these trade deals on our behalf. MCM is holding them to what was agreed to nothing else.

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  10. Only in Zambia where big business pays when they feel like as if they are doing you a favour by being there!!
    Wake up!!

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  11. I think we as a country we should ask the IMF to talk to MCM as they are the people that saw it fit to increase the electricity tariffs, MCM wants to get away with this in the name of contracts but they should grow up, these ideas are coming from their masters, back home these guys do not complain to such increments as they aware that such extra monies go to developing their country since this is not their country they don`t mind and don`t to want to help it develop, this is the result of allowing these people to run our economy. On this matter we should not give in, they must pay.

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  12. Their is NO substance in what the minister SPOKE, That advice even me i can give it, please Mabumba research before yapping

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    • Do not compare mines to Dangote Cement which has small energy demands to the mines. FQM will soon be pulling power from a coal power station in Botswana.

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  13. The comment made by Patriot is the right one. ZESCO should just supply electricity directly to the mines without CEC. What value is CEC adding by acting as a middle man? This is just unnecessarily increasing the cost of power to the mines resulting in the mines paying even lower taxes to government. CEC are thieves just like the mines.

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  14. This report does not state why some mining houses have “refused” to pay the so-called revised tariffs. It also does not say what conditions have been agreed by the “seven” compliant mining companies.
    Come on reporters, do some work before you go to press. Paying electricity tariffs by a mining conglomerate is not the same as transacting at Chisokone Market. It takes sustained legal, time-bound engagement before any future considerations can flow.

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  15. They are losing $3 million pay day. $3m x 365 days = $1.095 billion dollars. I am sure their power very bill is a small fraction of this. Mines must pay up. For a long time Zambia has subsidised power to the industries.

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  16. Mining is a business. Mopani is not refusing to pay taxes or wages.It simply cannot pay taxes and the current wage Bill neither can it absorb rising overheads arising from sharp electricity tariff increases.To cut the overheads Mopani has no choice but to reduce Head Count. Mopani has to run as a business and with sharp increases in its operating costs the Company has no choice but to retrench workers to remain Viable and Profitable.

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  17. The minister nneeded to understand the legal implications before imposing tariff increment on the mines. Too bad how i wish the mines where like shoprite stores easy to run , but mines the government can’t manage. Today the government re struggling to distribut fertilizer now can they manage to run a mine. engineers know what am talking abt

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  18. Those calling for the scrapping off of Cec should do some research about the company before making careless statements like some I have read.
    The question we should be asking ourselves is why Govt is bowing to the demands of IMF. Electricity is not cheap to generate but the tariff revisions are also to sharp without proper spacing in between.
    Coming back to CEC, One should realise that Yes Zesco can supply Power directly to the mines,But will that make the tariff cheaper for residential customers? It’s a clear understanding No….
    Value Addition to Power before it is sold is the language that CEC speaks.

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