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Zambia hikes electricity prices for mining companies

January 30, 2016 9:33 AM
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LUSAKA (Reuters) - Zambia increased the price of electricity for mining companies by 26 percent this year as Africa's second-largest copper producer seeks to attract investment in power generation, mining industry sources said.

The ministry of energy told mining companies they will pay 10.35 U.S. cents per kilowatt hour from January 1, up from 8.20 cents per kilowatt hour previously, one mining industry source told Reuters.

"This would have been acceptable if it only applied to emergency power imports but, as it is, some mining companies may be forced to shut down some processing plants," a second industry source said.

Mining companies operating in Zambia include Glencore, Canada's First Quantum Minerals, Vedanta Resources and Barrick Gold.

Source: af.reuters.com

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