Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Sentinel mine. (Image courtesy of First Quantum )
Canada’s First Quantum Minerals (TSX:FM), Zambia’s largest foreign investor, has kicked off production at its $2.1 billion Sentinel copper mine, amid low metal prices.
The Vancouver-based miner aims to produce 280,000 to 300,000 tonnes of the red metal a year, but warned commercial production levels at Sentinel will be reached only after state power utility Zesco connects the mine to the power grid, which is expected to happen in September, according to Reuters.
Earlier this month, First Quantum ‘s local subsidiary Kalumbila Minerals Limited (KML) said it would have to lay off about 1,480 workers after a reduction in its power supply curbed production.
Zesco has limited supplies after water levels at its hydro-electric plants dropped due to drought.
The copper processing plant at Sentinel was impacted by the restrictions, and operations were temporarily halted as a result.
KML, majority owned by First Quantum, is developing the Trident Project which comprises the Sentinel copper mine and Enterprise nickel mine plus associated infrastructure at Kalumbila in north-western Zambia.
The job losses would affect both Zambians and expatriates, KML said, warning of more cost cuts if electricity supplies were not secured.
2 Comments
Recho
Mining Companies from developed worlds investing these billions of US Dollars in developing countries should also invest in renewable energy wherever they are based around the world. Sustainable development is the answer to our global warming issues and the question of how they intend to achieve it should be asked? Countries such as Canada are so advanced in renewable energy such as solar farming. Hmm! I am wonder if First Quantum have proposed the solar farms as a solution to the shortage power to the Zambian government.Power shortage should be a thing of the past for First Quantum
Harry
The new government of Zambia are corrupt and incompetent. They are not attracting investors. high tax,power shortage and Zambians getting poorer.