(Adds details)
By Chris Mfula
LUSAKA, Aug 2 (Reuters) - Canada's First Quantum Minerals
FM.TO will lay off about 1,480 workers at one of its Zambian
copper projects after a reduction in its power supply curbed
production, the company's local subsidiary said on Sunday.
"Regrettably a reduction of approximately 1,480 construction
jobs will be brought forward at the Trident Project within the
first weeks of August," Kalumbila Minerals Limited (KML) said in
a statement.
Zambian power utility Zesco Ltd is limiting supplies after
water levels at its hydro-electric plants dropped due to
drought. ID:nL8N0ZN2LD
First Quantum Minerals last week shut its Sentinel copper
processing plant after electricity supplies to its operations
were reduced by 24 percent. ID:nL5N10A191
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.
"If power supply shortages in Zambia continue and cannot be
supplemented by imported power, KML will likely need to take
further actions to secure viability," the statement said.
The company said all discretionary spending has been
stopped, recruitment of 350 new employees is on hold, and the
process of closing out contracts to reduce costs had begun.
Copperbelt-based mining companies and their supplier
Copperbelt Energy Corp. CEC held a meeting on Saturday to
discuss ways of maintaining normal operations despite imminent
cutbacks in power supply.
CEC buys electricity from Zesco in bulk and sells it to
mining companies including the local units of Vedanta Resources
VED.L , Glencore GLEN.L and Vale VALE5.SA .
On Thursday, CEC told mining firms it would reduce power
supplies to mines by 30 percent from Friday but has delayed this
until agreement is reached with mining companies.
(Editing by Digby Lidstone)