Message Dim 21 Sep 2014 16:35

Zambia’s Copperbelt Energy Restricts Power to Konkola on Dis

Konkola Copper Mines Plc said Zambia’s Copperbelt Energy Corp Plc is restricting its power supply amid a dispute regarding tariff increases.

“The restriction in power supply will adversely affect Konkola Copper Mines’ operations and compromise safety of the employees and job security,” Shapi Shachinda, a spokesman for KCM, said in an e-mailed statement today.

A unit of London-listed Vedanta Resources Plc (VED), KCM operates the deepest mine in Zambia, the continent’s biggest copper producer. Copper contributes 70 percent to Zambia’s exports and is the biggest driver of foreign direct investment, according to Standard Bank Group Ltd. (SBK)

KCM is saddled with the highest power bill in Zambia’s mining industry after CEC raised prices, contravening provisions of a power supply agreement between the two parties, according to Shachinda. CEC is “working on a statement” on the matter, Chama Nsabika-Kalima, a spokeswoman, said by phone.

“KCM regrets that CEC has chosen not to pursue this matter in accordance with the PSA provisions on dispute resolution,” Shachinda said.