LUSAKA, April 6 (Reuters) - Zambia's government is talking
to mining companies to try to resolve a dispute about higher
electricity prices introduced at the start of the year, an
industry official said on Wednesday.
Zambia increased the price of electricity for miners by 26
percent on Jan. 1 as part of a bid by Africa's second biggest
copper producer to attract more investment in power generation.
But the increase has been disputed by miners in Zambia -
which include Glencore GLEN.L , Canada's First Quantum Minerals
FM.TO , Vedanta Resources VED.L and Barrick Gold ABX.TO -
as they are already grappling with a slump in commodity prices.
The ministry of energy had told mining companies they would
have to pay 10.35 U.S. cents per kilowatt hour from Jan. 1, up
from 8.20 cents per kilowatt hour previously.
Copperbelt Energy Corp. CECZ.LZ Managing Director Owen
Silavwe told reporters the mining companies were still paying
the old tariffs while talks with the government continued.
Copperbelt Energy is the main power supplier to mines in
Zambia and buys most of the electricity from state power firm
Zesco Ltd.
"The government is talking to the mining companies and all
other stakeholders, including ourselves. Hopefully agreement
will be reached soon," Silavwe said, without giving a timeframe.
The World Bank has recommended Zambia charge mining
companies higher electricity tariffs to attract investment in
power generation.