zambia
TSX-listed First Quantum Minerals reports that maintenance at its Kansanshi complex was completed in time; updates operations at Sentinel mine in Zambia.

The four-week scheduled maintenance of the First Quantum Minerals Kansanshi smelter has been completed within the planned time period.

A staged restart and ramp-up process was initiated on September 12 and steady steady-state operations are expected during the week beginning 18 September, 2017.

In addition unrestricted power is now being provided to First Quantum Minerals’ operations.

An agreement has been reached between ZESCO (the state-run power company), the Government of the Republic of Zambia and First Quantum Minerals whereby:

  • First Quantum agrees to a tariff increase, to approximately $0.09 per kilowatt hour, provided that Kansanshi and Sentinel can each import a portion of their total power requirements from alternative suppliers
  • The tariff increase will be implemented in two increments, with the first commencing immediately and the second being applied once the details of power import arrangements are agreed and formalised by contract
  • The tariff will be reviewed upon finalisation of a Cost of Service Study which has been commissioned by the Energy Regulation Board. The study is expected to be available in early 2018
  • The tariff is backdated to January 2017, with a portion of the arrears to be applied to improving the stability of power supplies for Kansanshi and Sentinel
  • The government and ZESCO have committed to provide continuous unrestricted supply of power to First Quantum Minerals’s operations and to facilitate the importation of power from alternative suppliers.

Through management action, budgeted production at the Kansanshi and Sentinel mines have been maintained for the quarter to date.

Feature image credit: Wikimedia