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Zambia power utility denies accusations of causing job losses in mines

Xinhua, January 9, 2016 Adjust font size:

Zambia's power utility on Friday denied accusations by a mining firm that it decided to lay off workers because of the power firm's decision to restrict electricity supply.

On Thursday, Kalumbila Mine Limited, a unit of Canada's First Quantum Minerals Limited, announced plans to lay off about 730 miners due to a decision by the country's power utility to restrict power.

The mine, situated in northwestern Zambia's Solwezi town, said it intends to lay off the workers at one of its operations, Sentinel mine, after power utility, Zesco Limited decided to restrict power supply to 70 megawatts from over 150 megawatts.

But Henry Kapata, the spokesperson of the power utility said the company had nothing to do with the mining firm's decision to lay off workers, saying the power restriction was mutually agreed upon by the two parties.

He further said the power restriction was 90 megawatts for the company contrary to reports by the mine that it was at 70 megawatts.

Zambia, Africa's second biggest copper producer, has seen increased job cuts since late last year on account of reduced prices of the red metal on the international market and a power deficit the country is facing.

Last week, another mining firm, Chibuluma Mines Plc, a subsidiary of Metorex (Pty) Limited of South Africa whose parent company is Jinchuan International of China, announced plans to lay off 263 miners.

The company, located in Lufwanyama district in the Copperbelt Province, said it was facing operational challenges due to falling copper prices hence the decision to lay off workers, according to Jackson Sikamo, the company's board chairman.

So far over 9, 000 jobs have been lost in the mines in recent months due to falling copper prices and a power deficit. Endit