CEC’s Power Supply to KCM Reduces to 160MW

Copperbelt Energy Corporation (CEC) Plc’s electricity supply to Konkola Copper Mines (KCM) has drastically dropped to an average 160 megawatts by the end of 2019, from a peak of around 210 megawatts one year ago, company data reveals.

And CEC plans to invest a 2x20MW solar PV in Kitwe with partner, InnoVent, under GET FiT programme, with an overall intention to invest in up to 200MW in solar technology over the next three to six years.

According to CEC head – power plants and mechanical systems John Silweya, CEC’s power distribution to KCM had sharply dropped to an average 160MW this year, from an average 210MW prior to the provisional liquidation team takeover of the mine in May, this year.

He explained that since mid-2019, KCM’s operational challenges had triggered a sharp drop in its access to electricity at its major mining assets of Nkana, Nchanga and Konkola.

“We supply both the Nchanga Mine and the one in Chililabombwe when they are at their peak with about 210MW. They did have challenges; I think you heard at the smelter, there was a challenge there so now I think the mine in Chililabombwe is doing about 80 MW and in Nchanga, they seem to be recovering, they are doing about 80MW as well now, so maybe about 160MW. But we are hoping that they can recover from those operational challenges, we are here to support them,” Silweya told journalists during a media tour of the Luano substation in Chingola District.

And live data from the control room indicating power distribution across CEC’s vast network across its entire network showed a breakdown in power supply across KCM’s three mining assets.

KCM Nkana accessed around 1.76MW; KCM Nchanga accessed 95.2MW, while KCM Konkola received 78.7MW by the end of November.

And speaking to journalists when he gave an overview of CEC’s operations, managing director Owen Silavwe explained that KCM remained the “wettest mine” in the world, hence the need to continuously supply the underground mining operation with electricity or risk losing the entire asset.

“So, one of the key features of the Copperbelt mines, unlike the or the North-Western Province mines, the Copperbelt mines are underground mines, they operate below the water table so one of the key features is that they tend to be very wet mines. For example, Konkola is the wettest mine in the world and because of that, you need these strategic assets to make sure that of the grid is not there, you have to be able to do critical operations. You need to be able to pump out the water because one of the facts known about Konkola was that if it stayed 30 minutes without pumping water, you basically lose the mine. You may not be able to operate. So, you need to continuously pump out the water, so you can’t afford not to have the ability to pump out if you have no grid at Konkola,” explained Silavwe, who also announced that the mining company had not paid for its electricity off-take for the majority of this year.

CEC is one of the oldest power utilities in the country, established in 1951 by mining companies on the Copperbelt, to manage their electricity supply needs as opposed to each mine managing its own electricity generation and distribution, which was the case prior to that year.

The company now supplies power to 10 mines on the Copperbelt, chief among them being KCM, which despite its ongoing operational challenges, consumes the largest chunk of electricity.

And CEC plans to invest a 2x20MW solar PV in Kitwe with partner, InnoVent, under the government’s GET FiT programme, with an overall intention to invest in up to 200MW in solar technology over the next three to six years.

Company data availed in a powerpoint presentation showed the utility’s ambitious power diversification programme over the next half-decade.

“Developing 2x20MW solar PV in Kitwe with partner, InnoVent, under GET FiT programme; intention to invest in up to 200MW in solar technology over the next three to six years; involved in up to 150MW Upepo hybrid (solar, wind, storage) generation project; participating in GET FiT small hydro programme,” read part of the presentation.

A check at one of the company’s 1MW solar pilot project showed that efforts were already underway to actualize this agenda.

“We installed this plant in April, 2018, and the installation took about three weeks. It’s a one megawatt (plant) and the output in simple terms, can power up to 500 big houses. If it’s these small houses in the compound, it can be in excess of 1,000 (houses). The number of panels installed is about 3,800; we have 24 inverters and we have got an 11 KV evacuation line. This power we are using here is consumed at CEC only. This is a pilot plant; we were thinking that before we embark on a bigger project, it’s better we learn, we start small then it had been strategically located near CBU (Copperbelt University) because we also want to assist CBU; we have got about 42 hectares of land, which is earmarked for the same facility. This is one megawatt and we hope the rest of the land, which is remaining, we should be able to put about 20 megawatts,” CEC project manager in charge of business development Cassious Chongo said during a tour of the 1MW plant in Kitwe last week.

“Solar energy is reliable enough, but it has got its negative sides because its intermittent. By that I mean that when there is some disturbance, the output drops. So, on this one, the next project we are working on is the battery storage where we should be able to mitigate that by installing the battery storage.”

CEC mostly owns transmission and distribution infrastructure, whose key usage is when the national grid is unavailable.

A big chunk of it is at Luano substation, which has generating capacity of 40MW; 20MW in Chililabombwe; 10MW in Mufulira and another 10MW in Luanshya.

Source: News Diggers

CEC Seeks Decisive Conclusion on Bulk Supply Agreement with ZESCO

Copperbelt Energy Corporation (CEC) Plc chief executive officer Owen Silavwe says talks are underway with Zesco Limited to renew the Bulk Supply Agreement (BSA) ahead of the expiry of the existing one, which lapses next year.

And Silavwe says the decision to not load shed mining companies in Zambia is more “economical” and not an act of selfishness as the country’s economy is largely influenced by the performance of the sector.

Speaking during a media interaction with journalists at the company’s head office in Kitwe, Wednesday, Silavwe announced that the power utility was in talks to renew their BSA with Zesco as not renewing the agreement would spell doom for its Copperbelt commercial and retail clients, who are being supplied electricity from CEC.

CEC currently supplies a stable supply of electricity to 10 major corporate clients in the province, including Konkola Copper Mines (KCM) Plc, its biggest client who consume largest chunk of power from its network.

The power utility also supplies to its retail clients, non-mining consumers, across the province at an average tariff of 3.5 US cents per kilowatt hour.

“We supply the power to everybody on the Copperbelt so it’s a question of how are we going to ensure that we do this in a way that will not antagonize the sector or the economy, I think that for me is quite critical. And I don’t think we have any challenges in achieving that in a very amicable and efficient way. I think what I would say is there is work that’s going on at the moment and that work is meant to find a solution to this. The Bulk Supply Agreement underpins the supply of power to everybody in the Copperbelt; it’s not just the mines, basically everybody on the Copperbelt. So, my view on it is that whichever way you look at it, a solution has to be found, if renewal is the solution, then so be it. But the critical takeaway is that a solution needs to be found, otherwise come that, day, nobody would want to see challenges on the Copperbelt, and basically challenges to the economy,” Silavwe said.

“So, we should try, as a country, to avoid dooms day! I don’t think we plan for dooms day. We are working on it, but we don’t have a conclusion today. The fact is process is ongoing, today. It’s not about what I want to see, it what is mutually agreed between the parties at the end of the day, that is important.”

And Silavwe explained CEC worked hard to ensure that the country’s power deficit did not affect mining companies.

“CEC supplies power to the mines on the Copperbelt; Zesco supplies power directly to the mines in North-Western so all the mines, whether on the Copperbelt or North-Western, they are currently not being load shed. It’s not just the mines on the Copperbelt. And the reason for that is obviously to try and protect the economy. At the moment, as I understand it, and it’s not that CEC is being selfish that’s why they are not being load shed. So, we obviously try and coordinate actions whether we are working through ourselves or we are working through the Ministry (of Energy), we try and make sure that we coordinate our efforts,” said Silavwe.

“One of the things we do as CEC is, if, for example, the mines need to be load shed, we try and make sure we use our contracts within the region to buy power and supplement whatever gaps are there because, remember the challenge with the mines is that if, for example, you take away 10 per cent of their power because they are running processes that are basically interconnected, they are dependent on each other. You might find that the mine actually needs to close, if they can’t run one process, it basically means they can’t run a subsequent process and they can’t run the next process. So, generally, what you try and do is to protect that to ensure that you protect the mine operations and you ensure that you don’t end up in that scenario. Most of the local residents on the Copperbelt work on the mines because the mines are second largest employer after government.”

Source: News Diggers

Zambia’s KCM smelter set to restart after two-week delay – minister

LONDON, Nov 26 (Reuters) – Zambia’s Konkola Copper Mines (KCM) smelter could restart next week after a delay of around a fortnight, mines minister Richard Masukwa told Reuters.

The smelter was shut down in early October for annual maintenance, two days earlier than planned due to a leak. It was initially scheduled to reopen on Nov. 15.

“This week we are testing and I hope that next week (the smelter) will be up and running,” Masukwa said on the sidelines of the London Mines and Money conference.

He did not elaborate on the reason for the delay to the restart of the smelter, which has a capacity of 311,000 tonnes.

KCM is the local unit of Mumbai-listed Vedanta, which owns about 80% of the company.

Vedanta has been locked in a dispute with the Zambian government since May when Lusaka appointed a liquidator to run KCM, which is 20% owned by Zambia’s state mining company ZCCM-IH. Zambia accused KCM of breaching the terms of its licence, an accusation the company has denied.

An arbitrator has been appointed to settle the dispute and both sides are negotiating dates for official proceedings, Vedanta executive Deshnee Naidoo told Reuters on Monday. (Additional reporting by Barbara Lewis; Editing by Pravin Char)

Lubambe Mine, a partner in ‘health wealth’-Chililabombwe Deputy Mayor

Chililabombwe Deputy Mayor Gift Musukwa has commended Lubambe Copper Mines for its continuous engagement in the Keep Zambia clean campaign.

Mr Musukwa said a healthy nation is a wealthy nation where he urged the residents of Konkola to fully participate in the activity which takes place every Saturday.

He said Chililabombwe council loves working with noble minded corporate entity involved in uplifting the lives of the people such as cleaning and giving chemicals and sanitary products to the community.

The Deputy Mayor said the continued participation of the mine in the anti-cholera and anti-malaria activities in Konkola is doing a great job in helping the community stay free from preventable ailments.

He also thanked Lubambe Copper Mine corporate social responsibility (CSR) Manager Lomthunzi Mbewe for continued efforts in partnering with the local authority.

And Joseph Mwila Ward Councillor Spolian Simwanda thanked Lubambe Copper Mines for the good gesture.

Mr Simwanda also thanked the new partner Nvumambaranda for providing packs of chlorine and 30 bins to be used in the community.

CEC Ponders Building Renewable Energy Plant

THE Copperbelt Energy Corporation (CEC) is conducting feasibility studies for the construction of a 350 megawatt renewable energy plant. CEC senior manager for special projects Cassius Chongo said this during a presentation on alternative renewable sources of energy in Kitwe on Thursday. Mr Chongo said the plant will be generating electricity through the use of solar and wind energy CLICK TO READ MORE

Kansanshi Reduces Costs with Linatex

Kansanshi, Africa’s largest copper mine, is located near Solwezi in Zambia. The mine site is very remote, so getting parts and replacement material to site is time consuming and costly.

Of particular concern for the operation was excessive wear in the tailings lines, as well as the overflow tank in the continuous counter-current decantation (CCD) circuit.

There is approximately 8km of tailings pipes running from the plant to the tailings dam. The mine had previously lined its pipes with a combination of high-density polyethylene (HDPE) liners and alumina ceramic tiles. These, however, only achieved a wear life of approximately nine months.

Kansanshi approached Weir Minerals Africa for an alternative solution and the company, which has a long-standing relationship with the mine, specified Linatex premium rubber to line the tailings pipeline. Known for its excellent wet abrasion properties, Linatex rubber also requires a considerably shorter time for lining installation when compared to alumina ceramic tiles.

The lining was completed well within the allotted time, saving Kansanshi unnecessary and costly plant downtime.

After 36 months in operation, the Linatex lining showed minimal signs of wear, and the installation has reduced the mine’s total ownership cost by over R1.6 million (US$107,000) per year.

Kansanshi also needed a more cost-effective wear solution for the overflow tank in the CCD circuit. This had previously been lined with alumina ceramic tiles, which only lasted between 60 and 90 days. The tiles were wearing away quickly due to the high impact and abrasion of the stones and sand flowing through the tank. Wash out between the tiles was preventing the tiles from adhering to the metal substrate and the subsequent damage to the tank required repair work.

In response, the Weir Minerals team specified Linagard nitrile-based rubber (NBR). The expected cost savings from the increased production and reduced maintenance offset the installation costs.

The Weir Minerals technical lining manager was on site for the duration of the tank re-lining to provide technical assistance to Kansanshi’s maintenance team.

Since installation, the Linagard NBR 30 has lasted 36 months without any visible signs of wear. According to Weir Minerals, this represents 18 times longer wear life than the previously installed alumina ceramic tiles and eliminated the need to repair the tank every 2-3 months.

Kansanshi has experienced significantly reduced downtime and increased productivity since the installation of the Linatex solutions, and mine maintenance personnel can focus on other areas of the mine. Weir Minerals stated that the mine’s costs have been reduced by R10.4 million (US$698,000) per year with its Linatex solutions.

 

Mopani Appoints Bullock as New CEO

MOPANI Copper Mines has announced the appointment of Nathan Bullock as its new chief executive officer.

Bullock takes over from Chris Vermeulen who left the mining giant in July this year.

Mopani public relations manager Nebert Mulenga made the announcement in a statement yesterday.

“Mopani Copper Mines Plc is pleased to announce the appointment of the new Chief Executive Officer, Mr Nathan Bullock, who joins the company from BHP Olympic Dam Mine in Australia. Mr Bullock takes over from Mr Chris Vermeulen, who left Mopani Copper Mines Plc in July 2019. The new Chief Executive Officer has since taken up his appointment and will be based at the head office in Kitwe. Mopani Copper Mines Plc Chief Services Officer, Mrs Senga Chitoshi, announced the appointment and arrival of Mr Bullock in a statement to the employees on Friday, 8 November 2019,” stated Mulenga.

“Mr Bullock, a geologist who holds a Master of Business Administration degree from Griffith University in Queensland, Australia, a Bachelor of Applied Science (Honours) in Applied Geology and a Bachelor of Applied Science in Geoscience, both from Queensland University of Technology, has a range of experience in mining and processing; including strategic planning, underground technical, concentrators and smelting/refining operations. He has also previously worked at Glencore’s Mount Isa Copper Mine and Ernest Henry Mine in Australia in a number of management roles.”

CNMC-LCM Donates Fertiliser, Seed To Luanshya Farmers

Luanshya Copper Mines Chief Executive Officer Wang Jingiun says the growing farming community in the district has posed a serious challenge on government to provide farming inputs.

Meanwhile, CNMC-LCM has donated farming inputs to the farmers in Luanshya for the 2019/2020 farming season.

Jingiun said this when he donated bags of seeds and fertilizer to Luanshya Mayor Nathan Chanda and Luanshya Central Member of Parliament Steven Chungu.

“The growing community in Luanshya has posed a challenge on the government to supply farming inputs. I am pleased to announce that this year, we have decided to donate fertilizer and seed to the vulnerable but viable farmers at the cost of K110,000 inputs this year. We have doubled the quantity of both seed and fertilizer,” Wang said.

He said LCM was going through challenges but has decided to help the vulnerable farmers.

“Despite the past challenges our company has continued to face due to the pressure on the global economic downturn, we have nevertheless continued to support our small scale farmers. This demonstrates the importance we attach to the social and economic well being of the people of Luanshya,” said Wang.

Luanshya Mayor Nathan Chanda said the gesture to support farmers comes at a time when the country is trying to diversify from mining to agriculture.

“These donations are made despite the company facing some financial operational challenges. But we will create an environment for you to operate freely. The local authority will ensure that you operate well. We want to assure you that these inputs will be put to good use. These inputs will go to the intended beneficiaries. We want to commend the President Dr Edgar Lungu for the first time, that the inputs for the farmers have been received on time in the entire Copperbelt province,” said Chanda.

“Once we support the agriculture sector, then we are assured of food security. Please don’t sell these inputs that you are given. Let us make Luanshya the food basket of the Copperbelt.”

Later, Chungu expressed concern that only the same farmers were benefiting from the support.

He said the fertilizer and seeds will be taken to the churches who will identify the vulnerable.

“Since 2009, LCM has been giving out seed and fertilizer. But it is the same farmers who are benefiting. Are they growing or what? So we will take the fertilizer and seeds to the Church who will identify the vulnerable farmers,” Chungu said.

However, the truck carrying the fertilizer and seeds was offloaded at the Luanhsya Municipal Council, a sign that the inputs will not be take to the Churches as directed by Chungu.

US $200m Solar Power Projects to be Built in Zambia

US $200m two solar power projects are set to build in Zambia. Funded by the Japanese Renewable Energy Company Univergy Solar, the two plants are expected to add a total of 200MW to the country’s national grid next year.

According to a statement from Zambia’s embassy in Tokyo, Univergy Solar Company is expected to develop and implement a 135MW project in northern Zambia and another 65MW project in Zambia’s copperbelt.

Furthermore, the solar power project will be implemented in collaboration with a Zambian company and is expected to create hundreds of jobs and business opportunities for local firms engaged to maintain the solar farms and generation plants.

Construction timeline

The Japanese firm will sign a Memorandum of Understanding (MOU) with the Zambian government to start work on the projects in the first quarter of 2020. The two projects are expected to be completed between six and eight months after the commencement date.

Also Read:Zambia to establish 107 MW solar energy plant in Hwange District

Zambia mainly relies on hydropower and has an electricity deficit of about 750MW due to low water levels at generation plants after a severe drought hit power production. The country cut its economic growth forecast to around 2% for 2019, from an estimated 4%, due to the impact of the drought on its power supply and agricultural production.

Solar power in Zambia

Zambia expects to triple power output to 6,000 megawatts (MW) in 2 years through expansion of solar energy by foreign investors, the head of its investment agency said.

Erratic electricity supplies have hit mining in the continent’s second-biggest copper producer, where the bulk of its generation capacity of 2,200MW of power is water-powered. The power problems and copper price slide have driven the kwacha currency to record lows amid a selloff in commodity-linked currencies as top copper consumer China’s economy has slowed.

Maamba Collieries in Zambia Sets Record Straight on Load-Shedding

Maamba Collieries in Zambia needs ZESCO to clear outstanding debts owed to the company so it can maintain efficient operations at its 300 MW coal-fired power plant.

Due to a continued shortfall in monthly payments of its power bills by ZESCO, Maamba Collieries (MCL) has not been able to keep up a robust maintenance programme at its modern eco-friendly thermal power plant – which has been contributing significantly to the energy balance of the country.

Read more about mining for coal

The cash flow shortage has resulted in the company being unable to sustain quality proactive maintenance to the 300 MW facility, and the recent forced shutdown of one of its two generation units, halving its power supplied to the national grid of Zambia to 130 MW.

“Maamba Collieries makes a significant contribution to the national grid and provides a vital diversification from the reliance on hydropower that has proved so vulnerable to climate change.

“We stand ready, willing and able to supply significant base load power to Zambia,” says Maamba Collieries CEO, Rear Admiral Venkat Shankar.

“But without payment from ZESCO – our sole source of revenue – we have insufficient funds to pay for costly spare parts and maintenance as also the project dues to our principal equipment supplier whose expertise we depend on, which is not a desirable situation in these times of energy crisis that the country is facing and may face over the next couple of years.”

The company confirmed that one of its two units was forced to shut down on October 17, 2019 owing to technical fault and requires extensive consultations with the equipment supplier.

A statement from ZESCO on October 18, 2019, attributed an additional three hours of load-shedding to the Maamba shutdown.

Typical of the state-of-the-art technology, the power plant requires intensive regular maintenance involving high expenditure for spares, support services from the equipment manufacturers and other maintenance activities.

However, since commencing supplying power in August 2016, there has been a continuous shortfall in monthly payments received from ZESCO against Maamba Collieries’ power bills, explained Rear Admiral Shankar.

The company has not disclosed the amount of funds owed but explained that the payment shortfall has left it with inadequate cash for conduct of operations and maintenance activities. 

“Maamba Collieries considers the emerging situation as being largely attributable to non-receipt of full payments from ZESCO, leading to MCL being cash strapped, which is increasingly beginning to impact the continued running of the plant and its machinery, and its ability to undertake repairs and proactive maintenance.

Under these conditions we are unable to confirm the timeline for resumption of operations of the unit that is shut down or guarantee continued availability of the second unit currently operating,” says Rear Admiral Shankar.

“We are hopeful of ZESCO’s cooperation in meeting our monthly payments, which would ensure that Maamba Collieries will be able to run its plant at full capacity in these difficult times of acute power shortage,” he added.