Mopani, CEC power standoff resolved

Amos Chanda

The standoff between Mopani Copper Mines (MCM) and the Copperbelt Energy Corporation (CEC) regarding electricity tariffs has come to an end after an agreement was reached that will see the resumption of normal power supply to the mining company today.

According to a statement issued by State House spokesperson Amos Chanda, government has facilitated the agreement between the two, which will be amicably concluded over an agreed period of six weeks.

Chanda says during the same period, Mopani and government will also conclude other outstanding matters on Value Added Tax (VAT) refunds and transfer pricing disputes.

“Mopani Copper Mines (MCM) and the Copperbelt Energy Corporation (CEC) have reached an agreement that will lead to the resumption of power supply to the mine today. The agreement which has been facilitated by government is to be amicably concluded between MCM and CEC over an agreed period of six (6) weeks. During the same period, Mopani and Government will also conclude other outstanding matters on Value Added Tax (VAT) refunds and transfer pricing disputes,” Chanda stated.

“The Minister of Finance Hon. Felix Mutati, the Minister of Energy Hon. David Mabumba and the Minister of Mines, Hon. Christopher Yaluma facilitated the Mopani-CEC talks that went on late into the night in Lusaka on 29th August 2017.”

Chanda stated that Mopani would inform labour unions that there was no cause for panic as all disputes were being addressed.

“Mopani will today inform Labour Unions that negotiations are taking place in good faith and therefore there was no cause for panic. All other matters incidental to the power impasse will be addressed by Mopani management. Glencore Limited directors, the owners of Mopani were represented by Mr Telis Mistakidis who flew in from Geneva, whilst CEC was led by Chief Executive Officer Mr Owen Silavwe.”

Chanda also disclosed that President Edgar Lungu had earlier in the day met Glencore directors to discuss the situation at Mopani.

On August 11, CEC restricted power supply to Mopani from 190 MegaWatts to 94 MegaWatts saying the mine did not want to pay the revised tariffs. Negotiations between the two institutions failed forcing Mopani to announce that they would retrench 4,700 workers.