LUSAKA, Aug 12 (Reuters) - Zambian power companies will cutelectricity supply to mining firms by 30 percent due to a powerdeficit which threatens to bring the economy of Africa's No.2copper producer to its knees, an industry official said onWednesday.
The decision was reached on Tuesday in a meeting involvingmining companies, state power utility Zesco Ltd and the largestsupplier of power to the mines, Copperbelt Energy Corp,Zambia Chamber of Mines president Jackson Sikamo told Reuters.
Zesco Ltd, which generates most of Zambia's electricity, islimiting supplies due to a 30 percent deficit after water levelsat its hydro-electric plants fell due to drought, he said.
"Both Zesco and CEC have indicated that they will makeavailable 70 percent of the power and the remaining 30 percentwill have to be imported at higher cost," Sikamo said.
Individual mining companies were expected to inform theirpower suppliers how much of the imported power they need thisweek and agreements may be signed by next week, he said.
The power imports would mainly be sourced from coal-firedand diesel-powered thermal plants within the region, he said.
"This is very urgent because water levels continue goingdown and if there are no cut backs now, Zambia may be plungedinto a total blackout by October," Sikamo said.
Mining companies operating in Zambia include First QuantumMinerals, Vedanta Resources, Glencore,Barrick Gold Corp TO> and VALE. (Reporting by Chris Mfula; Editing by James Macharia)
Glencore (GLEN)
