Message Mer 26 Aoû 2009 09:24

CEC records sale decline By CYNTHIA MWALE THE Copperbelt En

CEC records sale decline

THE Copperbelt Energy Corporation (CEC) has recorded a 17 per cent sales reduction due to the placement of Chambishi Metals and Luanshya Copper Mines under care and maintenance at the height of the global financial crisis.

However, the recent recovery in the international price of copper is expected to stimulate a rebound in sales.

According to CEC results for half year for the period ended June 30, 2009, issued by company secretary, Julia Chaila, revenue reduced to US$78.1 million from US$89.5 million in the previous year in the same period.

Mrs Chaila said demand from customers is expected to increase over the next two years in response to improved commodity prices.

She said that mining activities at the two mines in particular are likely to restart production during the second half of the year.

She said other mines whose operations have slowed down owing to the slump in the global copper and cobalt prices are expected to pick up.

The company also registered a decrease by 11 per cent to US$56.4 million in costs of sales, comprising payment from Zesco Limited under the Bulk Supply Agreement.

On the outlook, she said transmission assets have been constructed to support the construction of a new smelter, mining shaft and associated processes in Chingola and Konkola by Konkola Copper Mines (KCM).

“These transmission assets with a value of about US$35 million are expected to be transferred to CEC in the third quarter of 2009. The assets have been financed through a joint arrangement with KCM,” she said.

Other developments include construction of a new double circuit 220 Kilovolt interconnector between Zambia and the Democratic Republic of Congo which will start during the second half of this year at US$14 million.

The company has also been granted rights to undertake feasibility studies for the development of a hydro-electric plant at Kabompo gorge and identify a number of viable projects related to generation, transmission, distribution and supply within Zambia and neighbouring countries.