28th Jul 2015 09:33
LONDON (Alliance News) - First Quantum Minerals Ltd on Tuesday said it last week received notice of a Force Majeure for the supply of electricity to its Kansanshi operation from Zambia's state-run power company ZESCO.
As a result, electricity supply to Kansanshi was reduced to 117 megawatts from the steady-state level of 153 megawatts on Friday last week.
The reduction in supply by ZESCO applies to all mining operations on the north west of the country. In the notice of the declaration of Force Majeure, ZESCO stated that it has contracted independent power producers via power purchase agreements to procure more electricity by the end of 2015.
First Quantum said the facilities at the Kansanshi mine are currently operating at reduced capacities as the company considers a range of options to ease the issues caused by the reduced power supply.
Shares in First Quantum were down 0.3% to 578.50 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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