The Chambishi Copper Smelter in Zambia, operated by China Nonferrous Metal Mining Corp (CNMC), has implemented a significant reduction in production, amounting to one-fifth of its capacity. This decision comes amidst the prevailing challenges of power shortages afflicting the entire country. Zambia predominantly relies on hydropower for its electricity needs. However, the country has been grappling with severe drought conditions, the most severe in at least twenty years, leading to a substantial decrease in hydropower output.

Compounding the issue, Zambia's state-owned power utility, Zesco, has undertaken numerous large-scale maintenance projects on its electrical infrastructure over the past six months. These efforts have been aimed at expanding the transmission and distribution network, particularly in Zambia's capital, Lusaka. In November, Zesco had announced scheduled power outages as part of these maintenance activities.

Despite Zesco's recent declaration of electricity rationing, effective from March 11th, the Chambishi plant had already initiated measures to curtail its production capacity as early as last week. To mitigate the adverse effects of power shortages on its operations, CNMC is reportedly contemplating the installation of diesel generators at the facility, ensuring a more secure power supply during periods of electrical scarcity.

The facility manufactures roughly 250,000 tonnes of copper each year, making it one of the largest processing plants in Zambia. Presently, Zambia holds the position of being Africa's second-largest copper producer, with its status as the world's eighth-largest producer recorded last year.

The reduction in output at the Chambishi plant mirrors a broader decline in Zambia's copper production, reflective of the sector's struggles due to a lack of substantial investment. Notably, last year witnessed a notable slump in copper production, with figures dropping to approximately 698,000t from 763,000t in 2022. While the impact of power cuts on smaller copper producers within the country remains uncertain, the overarching ramifications on the industry remain to be fully elucidated.

In response to the challenges faced by both the Chambishi Copper Smelter and the wider mining sector, Zesco has announced its intention to convene discussions with mining companies on Thursday. The aim of these discussions is to explore potential strategies for mitigating the impact of power shortages, with Zesco targeting to reclaim approximately 250 megawatts, constituting around 20-25% of the copper supply.

In summary, the Chambishi Copper Smelter's decision to scale back its production capacity highlights the pervasive issue of power shortages plaguing Zambia, stemming from a combination of adverse weather conditions and infrastructural challenges. The ramifications extend beyond the individual plant, reflecting broader challenges faced by the country's copper mining industry. The forthcoming discussions between Zesco and mining companies represent a pivotal opportunity to address these challenges and strategize for a more resilient future for Zambia's vital copper sector.