First Mining Drc-Zambia Sep/Oct 2017 FMDRC-Zambia Sep Oct

Mining NEWS Zambia mining resumes aer power deal Zambia has agreed to provide uninterrupted copper miners is key to the country's mining “e tariﬀ will be reviewed upon nalisation of a power supplies to the Sentinel copper mine and industry and prospects for growth. c o s t o f s e r v i c e s t u d y, w h i c h h a s b e e n an associated smelter at Kansanshi - both “Resolution of the pricing and provision of commissioned by the Energy Regulation Board. owned by Toronto-listed First Quantum power remain paramount to the immediate e study is expected to be available in early 2018,” Minerals - on condition that the rm agrees to a future of mining in Zambia,” he said. said the Toronto-listed copper miner. backdated power tariﬀ increase. A bitter dispute had broken out between First Although other Zambian mining oﬃcials say Quantum and the Zambian power utility over Despite power supplies to its Zambian copper the power tariﬀ increase will be a drain to the the power tariﬀ increase. operations being reduced in the past few weeks, company, it will restore power supplies to the e Zambian government also had a dispute First Quantum has maintained its budgeted operations, according to First Quantum with Glencore's copper unit in Zambia, but an production at the mine, while production from Minerals. “Unrestricted power is now being provided to agreement has been reached between them to the smelter would be much lower. restore electricity supplies to the Mopani e company announced in July that copper Copper Mines. the company's operations. First Quantum agrees to a tariﬀ increase, to approximately output from its Kansanshi mine would increase to 248 000 tons, compared to the previous guidance First Quantum has since completed a four- of 240 000 tons. Output from the Sentinel smelter $0.09 per kilowatt hour, provided that week scheduled maintenance of the Kansanshi will be around 185 000 tons. Kansanshi smelter and Sentinel mine can each smelter and staged the restart and ramp-up import a portion of their total power process at the operation. Steady production is Copper production for Zambia in 2017 is seen requirements from alternative suppliers,” said expected to start this week. dipping to 753 992 tons from about 774 290 tons Clive Newall, senior executive at the company.  e t a r i ﬀ i n c re a s e a g re e d t o w i l l b e produced last year. e decline has been blamed Zambia is among the African continent's top implemented in two increments, with the rst on lower production from Konkola Copper copper producers, with exports of the mineral commencing immediately and the second Mines. largely accounting for the southern African being applied once the details of power import It's expected that Konkola's share of output will be country's foreign currency earnings. Nathan Chishimba, president of the Zambia arrangements are agreed and formalised. lower by 40 percent this year, according to “e tariﬀ is backdated to January 2017, with a Zambian Mining Ministry permanent secretary portion of the arrears to be applied to Paul Chanda. He also said production from Chamber of Mines, believes that resolution to improving the stability of power supplies for Lumwana Copper mine, which is owned by the power supply disputes involving Zambian Kansanshi and Sentinel. Barrick Gold, would be lower by some 15 percent. Page08 | Sep - Oct 2017 | FMDZ

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