Zambia power utility resolves dispute with Equinox
Mon Mar 22, 2010 2:44pm GMT
Print | Single Page[-] Text [+]
1 of 1Full SizeLUSAKA (Reuters) - Equinox Minerals has reached agreement with Zambia state power utility Zesco Ltd in a dispute over electricity charges for the mine, the two parties said on Monday.
Equinox Minerals' Lumwana Mining Company had sued Zesco Ltd over threats to terminate a power supply agreement with the firm and disconnect the mine from the electricity grid.
In a joint statement, the two said the $4 million settlement exempted the mining company from all claims relating to power supply charges incurred during the construction of Lumwana copper mine up to December 2009.
"We are very pleased that the dispute has been resolved in an amicable manner and we reiterate that the settlement agreement underscores our strong commitment to develop and grow a long-term relationship and partnership," the statement said.
The power supply to Lumwana represents a key extension of the interconnected power grid in Zambia and apart from providing bulk power supply to the mine, power has also been made available to residential housing in a town built by Lumwana.