By Wilfred Zulu
API/APN in Kitwe, Zambia– A huge private power firm supplying electricity exclusively to mining companies in Zambia has warned of a collapse of mining activities in the country unless generation is upped ‘urgently or the economy will die-out’.
Chief executive of Copperbelt Energy Corporation (CEC) Neil Croucher told journalists during a media tour of the company’s plant in the minerals-rich Kitwe town, 480 kilometres north of the capital, Lusaka, that the increased mining activities in the country had put a strain on the supply of electricity and major investment in rehabilitation and construction of hydro-power stations was needed by 2009.
The company buys a bulk of its supply (520mw) from a state owned utility, Zesco, and supplements from its own generators.
Zambia generates 1800 megawatts of hydropower – with deficit currently standing at 250 megawatts. The situation is replicated across the southern African region because of failure to invest in new power plants but now manifesting because of the increase in economic activities.
Botswana, Namibia, South Africa, Zambia and Zimbabwe have resorted to load shedding especially in non-commercial areas to cushion the impact of power deficit on major national economic activities. Power sharing agreement under the Southern African Power Pool (SAPP) has had little impact because of the common problem.
The mines are the largest consumer of power in Zambia taking 60 percent of the total load. Demand is projected at 400 MW by the mines alone by 2010 to handle the demand from three major new mining projects in North West and Southern Zambia.
“I am afraid to say that the mining activities [in Zambia] may retard or completely fail because there won’t be enough energy to drive the sector. If that happens, then unfortunately it would mean the collapse of the country’s economy,” said Croucher.
And the company has announced its intentions to list 25 percent of its shares on the Lusaka Stock Exchange to the public.
Croucher said this was to raise about $90 million for re-investment in new hydro-power stations.
Director of Finance and Strategy Michael Tarney added: “We want to grow and diversify CEC’s business by pursuing viable opportunities in the energy sector”.
Published by API /APN africanpress@chello.no
