Power demand from Zambia's copper mines is continuing to rise as
companies intensify operations to profit from rising global metal
prices, an official at Copperbelt Energy Corp. (CEC.ZM) said
Wednesday.
According to the official, the increase in power demand is being
driven by the resumption of operations at Luanshya Copper Mines,
which closed in December 2008 after global copper prices hit a
four-year low.
"Due to better copper prices, other mining companies have also
stepped up operations, and power demand is likely to exceed supply
by the end of the year," the official said by telephone from the
Copperbelt.
Data from Copperbelt Energy Corp., which supplies power to
copper mines in Zambia's Copperbelt province, indicate that power
demand from Zambian copper mines fell to its lowest level of 404
megawatts in September last year from a high of 530 megawatts in
2008.
Currently, demand is estimated at 430 megawatts, but Copperbelt
Energy Corp. projects demand will likely grow by 40% in the next
three years due to mining companies expanding their operations.
Konkola Copper Mines--a unit of Vedanta Resources PLC
(VED.LN)--will require an additional 170 megawatts of power when it
starts operations at its deep-mine project next year. Mopani Copper
Mines--a joint venture between Glencore International AG and First
Quantum Minerals Ltd. (FM.T)--is also expanding a deep-mine project
and an open-pit mine to boost output.
Zesco, Zambia's state power utility--which supplies power to
Copperbelt Energy Corp.--is in the process of upgrading various
power stations to meet the rising demand.
-By Nicholas Bariyo, contributing to Dow Jones Newswires;
256-75-2624615 bariyonic@yahoo.co.uk
