Message Mer 24 Sep 2014 20:27

Vedanta Suspends Operations at Flooded Zambia Copper Mine

The Zambian unit of Vedanta Resources Plc (VED) suspended operations at its Nchanga copper mine after a power cut triggered flooding.

An unspecified number of underground workers were rescued after being trapped, Konkola Copper Mines Plc said yesterday in an e-mailed statement. Konkola has suffered “massive financial losses” because of the suspension, it said.

Copperbelt Energy Corp., which supplies most mines in Zambia, started reducing power to Nchanga Sept. 20 because of a payment and tariff dispute. CEC deepened the cuts, Konkola said. The miner has lost about 482 metric tons of copper output worth $3.3 million, it said yesterday.

CEC denied increasing the severity of the cuts.

“Copperbelt Energy Corporation Plc categorically refutes claims by Konkola Copper Mines Plc that CEC has effected further power restrictions to their operations,” the company said in a statement. “Rather, it seems KCM had attempted to bypass the power restriction to the Concentrator that CEC had effected on 20th September, leading to a load ramp up which caused trip outs on the system.”

Normal supply at Nchanga resumed after a senior KCM executive contacted the managing director at CEC, the mining company said.

Long Stoppage

“It will now take weeks to dewater the flooded areas and further time to stabilize and resume normal operations,” said KCM.

Mines Minister Christopher Yaluma earlier this week directed Copperbelt and KCM to resolve the dispute.

“CEC deplores KCM’s continued attempts to vilify CEC in the public eye and play the victim while they persistently default on their payment obligations and renege on efforts to find a lasting settlement to our current challenges,” CEC said.

To contact the reporter on this story: Matthew Hill in Lusaka at mhill58@bloomberg.net