JOHANNESBURG (miningweekly.com) – The Zambia government is reportedly in talks with base metals producer First Quantum Minerals to try put a stop to possible job cuts, as operational challenges around restricted power supply have pushed subsidiary Kalumbila mine to possibly retrench 730 miners at Sentinel mine.
Zambia National Broadcasting Corporation (ZNBC) on Wednesday quoted Information Minister Chishimba Kambwili as saying that the mine and labour ministries were engaging the mining company after it allegedly notified the Ministry of Labour and Social Security, the Ministry of Finance and National Planning and the Ministry of Energy and Water Development of the retrenchment plans, following significant power reductions.
The country’s power-constrained State-owned utility Zesco had cut power supply to Sentinel from more than 150 MW to 70 MW, heavily curbing production and leaving the company able to operate only half of the plant.
With the national grid battling to meet its power supply commitments as water levels at its hydroelectric plants dropped due to drought, Sentinel warned that less power supply meant that the operation had no choice but to downscale to remain viable. Another 360 jobs currently under recruitment have been placed on hold if the power supply restrictions to Sentinel plant are not lifted.
In August last year, six months after starting first production at Sentinel, First Quantum warned of the retrenchment of about 1 480 workers after the power restrictions hit output. The firm subsequently shut its Sentinel copper processing plant after electricity supplies to its operations were reduced by 24%. However, the utility restored full power to the miner shortly thereafter.
Meanwhile, Zambian officials have assured the public that the construction of the Lusaka-Kalumbila power line was under way and that the government was committed to boosting power supply to the mining industry and other economic sectors in North Western province.