Oil & Energy
Blackout Forces Copper Miners To Suspend Work
A nationwide power blackout on Friday forced copper miners in Zambia, Africa’s top producer of the metal, to halt output, but the country’s energy minister said the action would only suspend electricity supply for some hours.
A fault at a hydro power station triggered the first national blackout to engulf the southern African nation since Jun, 2009, which cost copper producers millions of dollars in lost revenue and dented their copper output.
Power blackouts are frequent in Zambia, and have been a big concern for the chamber of mines and for foreign mining companies who own most of the key mines in the country’s copper belt province.
“Power has been restored in Lusaka, and we are now moving on to restore power on the Copper belt,” Energy Minister, Kenneth Konga told reporters.
It was not immediately clear how much production was affected.
Maxwell Mwale, Zambia’s mines minister, said he would give a detailed comment on the power blackout’s impact later.
“Production at the mines is affected …I am yet to receive a full report from the minister of energy,” Mwale told reporters.
An official at Zambia’s biggest copper producer, Konkola Copper Mines, majority owned by London-listed Vedanta Resources Plc, said its operations had been affected, but the group promised to issue a detailed statement later.
Sydney Chileya, a spokesman for the Luanshya Copper Mines, owned by China Non-Ferrous Metals Corp. (CNMC), said only limited power supply was available.
Frequent power stoppages are likely to affect Zambia’s plans to increase its copper production to 1 million tonnes next year, from just below 700,000 tonnes in 2009, analysts said.
The country has been trying to entice new investors to the sector as demand for the metal increases.
“It also sends wrong signals to investors on availability of energy despite assurances by the government,” Chibamba Kanyama, a member of the country’s main economic think-tank, the Economics Association of Zambia, said.
Foreign mining companies operating in Zambia include Canada’s First Quantum Minerals, London-listed Vedanta Resources Plc, Equinox Minerals, Glencore International AG of Switzerland, and Metorex of South Africa.
Copper prices appeared unaffected by news of the blackout, remaining at a one-week low on Friday as investors overlooked increased risk appetite in the wider markets.
Lucy Zimba, a spokeswoman for electricity utility Zesco, said the cause was due to a fault on a circuit breaker at the country’s Kariba North Bank hydro station, which set off a chain reaction that led to the countrywide blackout.
Zimba said power supply had been restored to parts of the capital Lusaka, and supply to copper mines would follow.
“The blackout was caused by a fault on a circuit breaker at Kariba North Bank (hydro power plant).
“We are working on the problem to restore power in Lusaka, after which we will try to switch on the Copperbelt lines,” Zimba told reporters.
The Copperbelt Energy Corp. (CEC), which buys the electricity from Zesco to supply Zambia’s copper mines, said it would try to provide power to the mines for emergency operations through imports from the Democratic Republic of Congo.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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