Copper production bearing the brunt of electricity shortages in the Congo
It is feared production in the Democratic Republic of Congo, Africa’s largest producer of the red metal, will drop this year due to power supply shortages to its largest producing region but also due to cost–cutting measures taken by companies to withstand falling metal prices.

According to the Congolese Chamber of Mines, copper production will shrink from the 1.03 million tons reached last year to 1.02 million. Production of diamonds, cobalt, zinc and other metals extracted in this central African country are also likely fall, the organisation declared. However, gold production is set to rise by 33.5% this year. An increase driven for the most part by Randgold Resources (LON:RRS) and  new mines opened by Banro Corporation (TSE:BAA).

This year, several factors will contribute to the fall in the country’s mining production. One of the most obvious of these is the shortage of electricity in copper-rich Katanga. According to the Chamber, SNEL the Congolese state electricity company, faces a “certain number of difficulties” in distributing power in the region and the situation does not look set to improve in the near future.

Source: mining.com

YOUR REACTION?

Facebook Conversations



Disqus Conversations