First Mining Drc-Zambia Sep/Oct 2017 FMDRC-Zambia Sep Oct | Page 13

In addition, improving rainfall and rising dam
levels in the country will ease some of the power
shortages which have been experienced in
recent quarters.
Zambia is highly dependent on hydroelectric
power generation and water levels at the Kariba
hydroelectric dam have already risen from 31%
in May 2017 to 54% in May 20 17, which should
help provide miners with ample power supply
in H2017.
Rising prices to boost production
Another key driver of Zambian strong copper
production this year will be the positive
trajectory of prices in 2017 relative to last year.
Since touching lows of US$4, 500/ton in June
2016 , copper prices have risen over 57% up to
$6,810/ton on 30 August due to strong Chinese
demand and generally tightening
fundamentals.
Bullish views on copper were recently
con rmed in July when the metal broke above
the $6,000 /ton leading to a new trading rang e
between $6,000 - 7,000/ton that will prompt an
upside revision to BMI Research's price forecast
in the coming weeks.
While it is possible that prices may unwind
from current levels towards the end of the year,
BMI Research thinks the gradual uptrend over
the last 12 months will bode well for mining
activity in Zambia as copper producers will
likely raise production on the back of increased
pro tability.
FMDZ |
Sep - Oct 2017
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