The Chamber of Mines of Zambia has warned that the country may be plunged into total darkness if mining companies do not cut back on power usage.

Chamber of Mines of Zambia President Jackson Sikamo said the level at which water is continue going down is urgent and that Zambia would be in total darkness by October if there are no cutbacks now.

Mr Sikamo has since announced that ZESCO will cut electricity supply to mining firms by 30 percent.

He explained that Copper mines will have the option of buying emergency imported power at a higher cost.

Mr Sikamo said most mining companies in Zambia are already making losses as copper prices linger near six-year lows saying having to pay more for the emergency power supplies unaffordable.

He said it is too early to say what the production impact of the power reductions will be or if they will cause job cuts.

Mr Sikamo said the decision was reached on Tuesday in a meeting involving mining companies, officials from ZESCO and the Copperbelt Energy Corporation.

Mr Sikamo said ZESCO informed the meeting that it is limiting supplies due to a 30 percent deficit after water levels at its hydro-electric plants fell due to poor rainfall
He said both Zesco and CEC have indicated that they will make available 70 percent of the power and the remaining 30 percent will have to be imported at higher cost.

Mr Sikamo said individual mining companies were expected to inform their power suppliers how much of the imported power they need this week and agreements may be signed by next week.

He also observed that the power imports would mainly be sourced from coal-fired and diesel-powered thermal plants within the region.

Mining companies earlier this month agreed to a voluntary reduction in power use of 10 percent to 15 percent.

Zesco has a 560-megawatt shortfall after water levels fell at the hydropower dams it relies on for more than 90 percent of its supplies.

Zambia’s normal generating capacity is about 2,300 megawatts.

Avarmma Mining Company Limited, a Russian owned company has applied for judicial review in the Lusaka High Court challenging the decision by Mines Minister Christopher Yaluma to hand over a mining licence to the Kasempa Community and ZCCM Investment Holdings Plc.

Avarmma Mining Company Limited contends that it owns Large Processing Licence number for Katokamema Mines which it says was irregularly transferred to the residents and to ZCCM-IH.

The company has since sued the Attorney General as first respondent and ZCCM-IH Plc as the second respondent.

Government handed over a large scale prospecting licence to Kasempa community to enable them manage mineral resources in the area to achieve development.

Minister of Mines, Energy and Water Development Christopher Yaluma said Government decided to issue the prospecting licence for Katokameema Mine to the community due to in-fighting that had erupted between Senior Chief Kasempa and Chief Ingwe over mining rights.

Mr Yaluma is optimistic that the model will enable the people of Kasempa get meaningful gains from the natural resources in their area and help create the much needed wealth, jobs and infrastructure.
During the handover ceremony of the community mine on Saturday, Mr Yaluma said Government has engaged ZCCM Investments Holdings Plc (ZCCM-IH) to provide guidance and expertise to Katokameema mine.

Kasempa Royal Establishment praised Government for giving the people of Kasempa a large scale prospecting mining licence to enable them carry out exploration of minerals in the Katoka-meema area.KRE spokesperson Norman Katombela said the people of Kasempa were overjoyed with Government’s decision.

Mr. Katombela praised Government for listening to the plight of the people of Kasempa district. He said the district has been languishing in poverty since its establishment in 1991.
Mr Katombela said the mine would help eradicate poverty and the high levels of unemployment among the youths.

However according to court papers seen, Avarmma Mining Company Directors were shocked to learn that Mr Yaluma without granting them the right to be heard in line with Section 150 (3) of the Mines and Minerals Act number 7 of 2008 cancelled their mining licence.

It stated the transfer of the licence was decided without tabling the matter with the Mining Advisory Committee, a statutory committee which was created under Section 150 (1) of Act number 7 of 2008.

It also submitted the Minister of Mines is not a member of Mining Advisory Committee adding that he cannot exercise is powers without consultation with the Committee.

Avarmma Mining Company is seeking relief on grounds that the issue of the hearing of any person that would be affected is not discretionary but mandatory saying the Applicant should have been heard by the Mining Advisory Committee before arriving at the decision that has seriously affected it including depriving it of the Mine and all its investments.

It said, “The area where Katokamena Mine is located is subject of the Applicants application dated 26th May 2014 under Application number 19841-HQ-LPL which application is still before the Mining Advisory Committee pending the Environmental Impact Assessment reports.”

Avarmma Mining Company contended that being a holder of the said Large Scale Prospecting Licence who even is in possession of the Mining Area where Environmental Impact Assessment tests are being conducted should have been heard.

It said if the Applicant had committed any offence, they should have been prosecuted under the Act adding that they have been deprived of the Mine without notice or any reasons and without being heard.

There are allegations that Avarmma have been investigated by the security wings for fraudulent activities in the manner they (Avarmma) obtained the prospecting license from Lion Resources, who were the original owners of the tenement.

The Chamber of Mines of Zambia has warned that the country may be plunged into total darkness if mining companies do not cut back on power usage.

Chamber of Mines of Zambia President Jackson Sikamo said the level at which water is continue going down is urgent and that Zambia would be in total darkness by October if there are no cut backs now.

Mr Sikamo has since announced that ZESCO will cut electricity supply to mining firms by 30 percent.He explained that Copper mines will have the option of buying emergency imported power at a higher cost.

Mr Sikamo said most mining companies in Zambia are already making losses as copper prices linger near six-year lows saying having to pay more for the emergency power supplies unaffordable.
He said it is too early to say what the production impact of the power reductions will be or if they will cause job cuts.

Mr Sikamo said the decision was reached on Tuesday in a meeting involving mining companies, officials from ZESCO and the Copperbelt Energy Corporation.

Mr Sikamo said ZESCO informed the meeting that it is limiting supplies due to a 30 percent deficit after water levels at its hydro-electric plants fell due to poor rainfall.

He said both Zesco and CEC have indicated that they will make available 70 percent of the power and the remaining 30 percent will have to be imported at higher cost.Mr Sikamo said individual mining companies were expected to inform their power suppliers how much of the imported power they need this week and agreements may be signed by next week.

He also observed that the power imports would mainly be sourced from coal-fired and diesel-powered thermal plants within the region.Mining companies earlier this month agreed to a voluntary reduction in power use of 10 percent to 15 percent.

Zesco has a 560-megawatt shortfall after water levels fell at the hydropower dams it relies on for more than 90 percent of its supplies.Zambia’s normal generating capacity is about 2,300 megawatts.

GOVERNMENT has made further headway as it hastily creates a power-pool from imports and other local interventions to end load-shedding, Energy Minister Christopher Yaluma has said.

Mr Yaluma said among the projects to be rolled towards the end of this year and the start of next year are the Kasama-Pensulo, the Itezhi Tezhi power projects and the Maamba Collieries thermal power plant.

Additionally Zambia and Malawi have signed a Memorandum of Understanding (MoU) for a 330 kilovolts power interconnector to boost supply between the two countries as the region grapples with a power deficit.

Recently Zambia and the Democratic Republic of Congo (DRC) signed another MoU targeting the development of hydropower plants on the Luapula River as a long-term measure to boost power generation for both countries.

The project would commence in 2017 and complete in 2020.

Mr Yaluma said on Tuesday after the signing of the MoU with Malawi that the projects once completed and others that would be launched soon, would greatly address the issue of load-shedding in the country.

He said the importation of 148 Mega Watts (MW) of power from Mozambique was already on course apart from the 100 MW which had already been added to the power grid from the neighbouring country.

He said another 60 MW was being planned for importation from South Africa.

He said once power was sufficient, Zambia would become a hub for power generation in the region.

He said it was for this reason that Government was fast tracking development and upgrading of infrastructure development in the energy sector.

“We agreed to fast track projects in the energy sector and we have gone very far in as developing this infrastructure is concerned,” Mr Yaluma said.

The 330 KV Pensulo-Kasama substation had been completed and transmission was scheduled for this year and the same applied for the 120 MW Itezhi Tezhi power plant slated for commissioning between November and December this year while Maamba which would produce 150MW would be commissioned by February next year.

On the inter-connector with Malawi, Mr Yaluma said this would involve the construction of a transmission line from Pensulo in Zambia to Lilongwe in Malawi.

Mr Yaluma said the connection between the two countries would help them manage power networks in the region effectively.

“I think this connection is long overdue for Zambia, but with what is going on in Zambia in terms of power crisis, I think this is the right time,” he said.

He said Zambia and Malawi should position themselves in the region to ensure inter-connectivity of grids was done across countries and assist boost foreign exchange.

He said Zambia would also sign more deals with Mozambique, Democratic Republic of Congo (DRC), Zimbabwe, Botswana and Namibia.

Malawian Minister of Natural Resources, Energy and Mining, Bright Msaka said energy was a challenge to both Zambia and Malawi hence the importance of the two countries to connect with all countries they shared borders with.

Mr Msaka said Malawi would be cooperating with Zambia in the energy sector to ensure that the two countries assisted each other.

“It is the desire of both of us to ensure we provide service to both countries. Our first inter-connector is with Zambia naturally. We want to promote and develop mining and manufacturing industries, as well as expanding domestic power,” he said.

THE Livingstone City Council has warned of stern action against street vendors who are currently making advances and maneuvers to resume trading in the central business district especially in the late afternoon.

Livingstone City Council acting town clerk Chabala Chanda said the local authority was aware of some vendors sneaking their products on the streets and the frontage of the Main Post Office in Livingstone saying the State Police would be engaged curb the vice.

Mr Chanda said it was unfortunate that some vendors had decided to come back into the streets when they were offered alternative trading areas shortly before the 20th session of the United Nations World Tourism Organisation (UNWTO) Conference in August 2013.

He said there was need for traders to continue trading in those designated places because that would also help keep the city clean.

“As a local authority, we have not allowed any form of street vending especially in the central business district,” Mr Chanda said.

He said it was important for traders to abide by the law because no one was going to be spared if found on the other side of the law.

But some vendors talked to say they were forced to bring their merchandise into the central business area because that was where they found customers.

A vendor, Josephine Mutaka who trades in assorted vegetables and fruits, said vendors were tired of waiting for the completion of the ultra-modern Town Centre market which had taken almost two years from the time construction started.

Ms Mutaka said customers found it convenient to buy from them because they were within reach other than going to the Common Market for Eastern and Southern Africa (COMESA) market as well as Green Market.

She appealed to the Government to quickly find resources and complete the Town Centre market which was centrally positioned in town.

“We are appealing to the Government to find resources to finish the construction of market. In 2013 when they started constructing the market, we were told that it would only take six months to be completed, but six months has now become two years.

“We to know what is happening otherwise we shall all come back and trade from the street because it is more convenient for us and our customers,” Ms Mutaka said.

THE Food Reserve Agency (FRA) has targeted to buy 500,000 tonnes of white maize starting next week on Monday at a cost of K 70 per 50 kilogramme bag during this marketing season.

The FRA would further buy 2,100 tonnes of paddy rice at K60, 000 per 40 kilogramme bag and emphasized the need for farmers to ensure their grain met the internationally acceptable standards.

FRA executive director Chola Kafwabulula said a total of K700 million would be spent to purchase the 500,000 tonnes and was expected to create more than 6,000 direct seasonal jobs mostly for youths and the local communities.

” In view of the attainment of the recommended 12.5 per cent moisture content for maize grain, the FRA will enter the market by Monday, August 17, 2015, FRA is targeting to buy 500,000 MTof maize and 2,100 of rice, the buying period will go up to October month end,” Mr Kafwabulula said.

Mr Kafwabulula said the Agency would only buy the authorized quantity of crop for strategic reserves and expected the private sector to play an important role effectively by buying a good share of the marketable surplus crop from farmers.

Mr Kafwabulula said at a press briefing yesterday that the delay to commence the process of buying maize from farmers had been hampered by the moisture levels which were above 12.5 percent caused by the sudden late rains and low temperatures recorded in past weeks.

He said countrywide recruitment and training of personnel to undertake the exercise had already been conducted while 17,577,171 empty grain bags, 33,761 bailing, 10,825 black polythene sheets, 3,251 platform scales and 4,136 grain services had been made available for the smooth and uninterrupted season.

Mr Kafwabulula said significant purchases were expected in Northern regions of Luapula, Muchinga and the North Western where private sector participation was minimal due to challenges on terrains and inadequate support infrastructure.

“The Agency’s vision through its storage investment plan is to attain 2,118,000 MT of secure storage by the year 2018, the crop destruction of this year stands at four per cent compared to 16 per cent last year while in 2013 it was at 19 per cent,” he said.