Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – Aim- and TSX-listed First Quantum Minerals has idled its Sentinel processing plant and redirected its power supply to enable its Kansanshi mine to operate as close to capacity as possible and maintain its development momentum, as Zambia’s power utility imposes power restrictions on mines in the country.
Following Zesco’s move over the weekend to limit power to customers to mitigate an impending power crisis as a drought hit the water-fed hydroelectric power-generation plants, First Quantum opted to focus on Kansanshi and its smelter, which reached commercial production status ahead of expected during the second quarter, instead of running both operations at reduced capacities.
On July 25, electricity supply to Kansanshi, including the smelter, was reduced to 117 MW from a steady-state level of 153 MW, while electricity supply to the Sentinel project was cut to 42 MW from 55 MW.
First Quantum said it was not certain of the duration of the supply reduction or its impact on production; however, Zesco had contracted independent power producers through the signing of power purchase agreements to procure more electricity by the end of 2015.
The ramp-up and commercial production date of the Sentinel project, which had been making steady progress to date, would now be delayed for an unspecified period.
Commercial production had been on track for the third quarter of this year, with all the required power set to be connected by August.
Now the company was assessing the effect of the shutdown on its production guidance for the full financial year.
Total physical production at Sentinel was expected to be between 80 000 t and 100 000 t of copper, while, overall, First Quantum had indicated a guidance of between 410 000 t and 440 000 t of copper for the year.
Nickel output was expected to reach between 32 000 t and 40 000 t; gold between 218 000 oz and 247 000 oz; zinc between 40 000 t and 45 000 t; palladium between 20 000 oz and 23 000 oz and platinum between 25 000 oz and 35 000 oz.