* Job cuts sweeping across Zambia mines
* Some mining operations to be shut down
* Chamber of mines wants lower royalties
By Chris Mfula
LUSAKA, Sept 23 (Reuters) - The job cuts sweeping across
Zambia's mines could get worse in Africa's second-biggest copper
producer as companies scale down operations due to electricity
shortages and higher production costs, an official said on
Wednesday.
An electricity shortage and weaker copper prices have put
pressure on Zambia's mining industry, threatening output, jobs
and economic growth in the southern African nation.
"Some parts of mining operations will be shut down or scaled
back to cope with the load-shedding (power cuts)," Zambia
Chamber of Mines economist Shula Jalasi-Shula told Reuters.
"Power is used not only in mining and processing, but also
in maintenance, especially in our old underground mines where
power is an extremely high overhead cost. We need a reduced
royalty rate to help cope with the prevailing commodity price."
Zambia's government in June cut mineral royalties for
underground mines to 6 percent from 9 percent and those of open
cast mines to 9 percent from 20 percent following an outcry by
mining companies.
Glencore's GLEN.L Zambian unit Mopani Copper Mines (MCM)
has said it plans to lay off more than 3,800 workers due to
lower metal prices and high production costs. ID:nL5N11T1R5
China's CNMC Luanshya Copper Mines put 1,600 staff at its
Baluba operation on forced leave and Konkola Copper Mines (KCM),
owned by Vedanta Resources Plc VED.L also put 133 employees on
forced paid leave. ID:nL5N11A1VN
Zambian power companies and mining firms in August agreed to
cut power supply to the mines by 30 percent due to a power
deficit which has risen to 985 megawatts (MW) in September from
560 MW in March. ID:nL5N11S4GB
Zambia's power generation capacity stands at 2,200 MW, with
the bulk produced from hydropower, but supply is often erratic.
Zambia has resorted to importing power from Mozambique and
the Southern African Power Pool but this has made it more
expensive to run the mines, Jalasi-Shula said.
Other foreign firms running mines in Zambia include Barrick
Gold Corp ABX.TO and Canada's First Quantum Minerals FM.TO .
(Editing by James Macharia and David Evans)