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First Quantum's Zambia mine hit by power outage

Reuters | Tue, 09 Feb 2010 18:05
[miningmx.com] -- Canada's First Quantum Minerals' Kansanshi Mining Ltd., Zambia's largest single copper mine by output, is losing $10m per day after a power blackout halted production, the company said on Tuesday.

State power utility Zesco said a power supply line feeding Kansanshi and Australia's Equinox Minerals' Lumwana mine had been vandalized, affecting power supply to the two mines.

"This might affect our production forecast because as it is we are losing $10m per day and latest estimates indicate that the earliest that it can be resolved is by the end of tomorrow," First Quantum resident director Kwalela Lamaswala told Reuters.

Lamaswala could not immediately quantify the output losses at Kansanshi mine, which produced 245,000 tonnes of copper in 2009 compared with 215,000 tonnes in 2008.

Kansanshi spokesman Godfery Msiska told Reuters the power went off on Sunday evening and the mine had not produced any copper since then.

Output at Lumwana, which produced 109,413 tonnes of copper last year and plans to raise that to 135,000 tonnes this year, was not affected because the company was relying on diesel-powered generators and equipment, an official said.

Lumwana managing director, Adam Wright said although repairs to the supply line may only be completed by the end of this week, the power outage would have no impact on the company's production estimates.

Lumwana's output was not affected because the company was relying on a diesel-powered generator, an official said.

"This will not prevent us from meeting the production targets set for the first quota of 2010. We shall concentrate on mining ore with diesel equipment and bring forward some planned plant maintenance work," Wright told Reuters.

Joe Chiyassa, the Zesco Ltd director for customer services said he could not estimate when Zesco would restore power supply, but said the utility was working on the power line.

Copper mining is the economic lifeblood for Zambia.

Other foreign mining companies operating in Zambia include London-listed Vedanta Resources Plc, Glencore International of Switzerland and and Metorex of South Africa.