Reuters reports that Zambia is close to reaching an agreement with mining companies over its plans to increase electricity prices, Finance Minister Felix Mutati said on Wednesday.
The government last month 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.
A team headed by the minister of energy was due to hold talks with mining companies this week, including First Quantum Minerals.
“We have concluded with all the mining houses except for one. They have accepted our proposal to actually pay 9.33 cents/kwh,” Mutati told Reuters.
However, an agreement has not yet been reached on backdating the higher tariffs to January as proposed by power firm Zesco Ltd, he said.
“It is part of the negotiations but ideally that is what the government is considering,” Mutati said.
Other mining companies operating in Zambia, Africa’s No. 2 copper producer, include Glencore of Switzerland, Brazil’s Vale and London-listed Vedanta Resources.
Last week Zambia’s Energy Regulation Board (ERB) approved a 75 percent increase in the price of electricity for retail customers.
This is good news. If they don’t want to pay, let them leave. Poor people can not be subsiding rich conglomerates.
I hope they also get a 75% increment
With the mines they go to plead and they are the biggest users…what a country!!
The price increase being applauded means the cost of production is increased. Mines lay off workers we cry foul.Copper prices have increased but not quite out of the woods yet.
9c on a kw increases the cost of production?
When Zambia privatised the Mines for the first time, we had a 51% shareholding. Production and demand for copper around the world was not even as high as today. The invest
Continued…
Today we are negotiating 9c/kw charge only on the means of production which we produce. It shows how bad leadership has brought a curse to this country.
Mathematicians How does this increase compare with the one for the rest of us?