Zambian Mining News The Premium Source of Information on The Zambian Mining Industry
Related Articles
Africa’s second-largest copper producer, Zambia, is grappling with a deepening power crisis triggered by the worst drought in living memory. The government has thrown down the gauntlet to the mining industry, demanding a 40% cut in power consumption – double the current level.
The state power utility, Zesco, has issued the stark ultimatum to mining operators, leaving them with the unenviable choice of slashing operations or seeking their own emergency power supplies. The directive comes as the country’s hydroelectric power plants struggle to cope with dwindling water levels.
First Quantum Minerals, the mining behemoth responsible for over half of Zambia’s copper output, is already feeling the pinch. While the company has managed to offset more than half its power needs through imports, primarily from Namibia and Mozambique, the remaining shortfall is being shouldered by other mining players.
Anthony Mukutuma, First Quantum’s country director, admits the increased reliance on imported power is a costly exercise, adding an average of six cents to the price of every pound of copper produced. This represents a doubling of costs since April.
Copper is the lifeblood of Zambia’s economy, accounting for a hefty 70% of export earnings. The government has been desperate to shield the mining sector from the full force of the power crisis, while ordinary citizens endure crippling blackouts lasting up to 12 hours a day.
For now, production has remained relatively stable thanks to cooperation between the government and the mining industry. However, Sokwani Chilembo, CEO of the Zambia Chamber of Mines, warns that the situation could deteriorate in the final quarter of the year.
Undeterred, First Quantum is exploring alternative energy sources to reduce its reliance on the national grid. The company is partnering with TotalEnergies to develop a 430-megawatt wind and solar power project, with operations slated to commence by late 2027. Additionally, First Quantum is eyeing hydropower opportunities in remote parts of Zambia to diversify its energy mix and mitigate risks.
As the drought persists and power shortages deepen, the mining industry faces a daunting challenge. The ability to navigate this crisis will be a test of resilience and innovation, with far-reaching implications for Zambia’s economy.
