(Adds CEC comment)
By Chris Mfula
LUSAKA, July 31 (Reuters) - Zambia's power supplier
Copperbelt Energy Corp. (CEC) CECZ.LZ has delayed a plan to
reduce electricity to mines after firms warned they would have
to close processing plants and shed jobs, a CEC spokesman said
on Friday.
"It is expected that consultations will conclude over this
weekend, following which necessary cutbacks, of up to 30
percent, would be effected," Chama Nsabika-Kalima said.
Zesco Ltd., the main electricity supplier in Africa's second
biggest copper producer, is limiting supplies after water levels
at its hydro-electric plants fell due to drought.
ID:nL8N0ZN2LD
CEC buys electricity from Zesco in bulk and sells it to
mining companies including the local units of Vedanta Resources
VED.L , Glencore GLEN.L and Vale VALE5.SA .
On Thursday, CEC told mining firms it would reduce power
supply by 30 percent to mines from Friday. ID:nL5N10B0YS
"CEC told us that the planned reduction of power supply will
be delayed pending the outcome of a meeting with mining firms
tomorrow (Saturday)," Zambia Chamber of Mines president Jackson
Sikamo told Reuters.
Energy minister Christopher Yaluma said the government would
not allow any reduction in power supply to mines without
consultations with them, state radio reported on Friday.
Yaluma said a huge reduction of power supply to smelters
would dent Zambia's copper production.
"Power supply has not been reduced," an industry source
said. "Mining companies yesterday made a very serious
presentation to the government, Zesco and CEC that reducing
supply as planned would lead to closures of processing plant and
job cuts."
Canada's First Quantum Minerals FM.TO on Monday shut its
Sentinel copper processing plant after Zesco reduced electricity
supply to its operations by 24 percent. ID:nL5N10A2AB
Chief executives of mining companies were due to meet on
Friday to plan how their firms would reduce their own
electricity demand, another industry source said.
"The idea is to put in place a power rationing plan that
will not seriously disrupt operations and undermine safety," the
source said.
(Editing by James Macharia and William Hardy)