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Zambia has pledged to maintain electricity supplies to the mining industry despite the expiry of the power supply agreement between Zesco and the privatised Copperbelt Energy Corporation (CEC).The bulk supply agreement (BSA) expired on 31 March, ending a 23-year-old arrangement for electricity supply to the country’s economic mainstay sector. The government says Zesco will continue supplying power to the Copperbelt for up to 12 months while a long-term solution is sought.

Luxembourg-based Eurasian Resources Group has concluded power supply arrangements for its Frontier copper mine on the border between Zambia and the Democratic Republic of Congo (DRC). Eurasian announced on 26 November that a contract had been signed with Société Nationale d’Electricité (Snel), DRC commercial bank Rawbank and Zambia’s Zesco, which will supply 41MW. Frontier is an open-cast mine with facilities to produce copper sulphide concentrate, treating over 10m t/yr of copper sulphide ore.

A perennial issue in Tanzanian politics and business – the extent to which the East African state is exploited by international capital and should reap bigger yields from its natural resources – returned with a vengeance when, on 4 July, the National Assembly unanimously passed three laws covering natural resources investment. Tabled on 29 June, the ‘urgent status’ legislation will support President John Pombe Magufuli’s efforts to force energy and mining companies to give Tanzania a better deal – a cornerstone of his government’s populist appeal.

Société Nationale d’Electricité (Snel) signed a provisional agreement with Eskom in April to import 200MW of power for mining companies in Katanga. The utilities signed a term sheet outlining the main points for a 200MW contract, with a view to concluding a renewable, five-year power-supply agreement soon.Katanga chairman of the Fédération des Entreprises du Congo (FEC) business association Eric Monga Mumba Sombe Sombe told African Energy that additional capacity would be transmitted to Snel through the Zambian grid.

Israeli businessman Dan Gertler has sold his stakes in two cobalt and copper mines to Glencore in a $960m deal. Glencore will buy Gertler’s 31% stake in Mutanda Mining and his 10% stake in Katanga Mining, both of which are held through his Fleurette Properties. Glencore will pay $534m in cash to Fleurette, once outstanding debt is deducted, giving it 100% of Mutanda and 86% of Katanga.

The Energy Regulation Board (ERB) has announced an average 36% increase in retail fuel prices with effect from 14 October as the government starts implementing an austerity programme that will also lead to an increase in electricity tariffs. Zambia is facing significant economic problems as a result of a fall in copper prices coupled with high government spending on infrastructure projects, emergency power imports and subsidies. The government is in talks with the International Monetary Fund about a potential financing package.

The Mwadingusha hydropower plant on the Lufira River has begun supplying power to the national grid after the completion of rehabilitation work on the first of six turbine generators at the plant. Electricity from the 11MW unit will support development and exploration work at Kamoa, which is considered to be the world’s largest undeveloped high-grade copper deposit, Ivanhoe Mines announced on 13 September. Modernisation of Mwadingusha’s five other units is under way, it said. Once completed it is expected to restore Mwadingusha to its original installed capacity of about 71MW, the mining group added, without disclosing the scheduled completion date.

Democratic Republic of Congo catches the imagination of those who see its potential to drive Africa’s future through its mineral wealth, resourceful population and the Inga Falls hydroelectric resource. But grandiose visions tend to founder on rocky realities in this vast, extravagantly diverse country, where power politics and the global commodities price crash – which in early May forced the government to cut 2016 spending by some 22% – have deeply unsettled much of what remains of international business. In May, major investor Freeport-McMoRan Copper & Cobalt announced it was selling up.

One of the largest and most resilient investors in Democratic Republic of Congo, US minerals giant Freeport-McMoRan Copper & Gold (FCX), has announced the sale of its Tenke Fungurume copper and cobalt mine in Katanga to China Molybdenum Company in a $2.65bn deal. Poor economics may finally have persuaded FCX to pull out of DRC, having survived intense political pressure during the years of President Joseph Kabila Kabange’s mining review. The government was not informed before FCX’s 9 May announcement.

Power rationing by Zesco has forced First Quantum Minerals to leave its greenfield Sentinel processing plant idle so as to redirect its electricity supply allocation to the Kansanshi copper mine and smelter. Kansanshi’s steady-state consumption level is around 153MW, but had been cut to 117MW by 25 July; Sentinel had been taking around 55MW, but Zesco cut that to 42MW. Power has also been cut by Zesco for Barrick Gold’s Lumwana open-pit copper mine

Malawi is completing the sign-up steps to become an Extractive Industries Transparency Initiative (EITI) candidate and is expected to present an application to the EITI Board by 30 June. The EITI is part of the government’s commitment to develop the oil and mining sector in a manner that generates revenue to the state and benefits the citizens of Malawi.In a state of the nation speech to parliament on 5 May, President Peter Mutharika said: “In view of the commitment by government to enhance transparency in the mining sector, government will join the EITI to promote revenue transparency.

In its latest annual report, the Congolese Chamber of Mines has come up with proposals to help tackle the power shortages that are hampering output. According to the report, 2014 copper production reached a record 1,029,800 tonnes, 12.6% higher than 2013, and more than three times the 2008 output. But at the same time, the report warned: “If production is to exceed 1m t/yr consistently, it is essential that the deficit in electricity supply is overcome.” Production growth was supported by power imports from Zambia, and the report said significant production increases in Democratic Republic of Congo could not be envisaged unless domestic power supply improved.

Miner First Quantum Minerals Ltd (FQM) has agreed to purchase up to 75% of the Sese coal-to-power project from Australia’s African Energy Resources (AFR) for $20m. The companies have executed a binding heads of agreement under which FQM can earn an interest in the Sese project through investment of A$20m and arranging finance as a loan carry for AFR’s 25% interest in the project. FQM will also buy shares in AFR, giving it 12.6% in the company, which is developing a series of 300MW integrated power projects and captive coal mines at its Sese project.

Mining companies have expressed concern that April’s increase in electricity and fuel prices will not only hurt existing mining operations, but also make Africa’s second biggest copper producer less attractive as an investment destination. In April, the Energy Regulation Board (ERB) approved a 28.8% electricity price increase for mining companies and raised fuel prices by an average of 8.3% after the kwacha lost value against major convertible currencies. The ERB said the bulk supply agreement tariffs between state power company Zesco and Copperbelt Energy Corporation had been adjusted to 6.84 cents/kWh from 5.31 cents/kWh.

Israeli mining magnate Dan Gertler’s Fleurette Group has teamed up with Brazilian construction group Andrade Gutierrez to develop power, road and rail infrastructure in Democratic Republic of Congo (DRC). Gertler already has substantial investments in DRC, covering oil blocks 1 and 2, as well as extensive copper mining interests across Katanga Province. While Andrade Gutierrez has widespread experience across Africa, with a presence in Angola, Algeria, Republic of Congo and Guinea, the JV represents the company’s first foray into DRC.