The PF government has again increased the price of electricity for mining companies by 26 per cent, mining industry sources said.
And the trial and error PF government is expected to increase the price of electricity for domestic consumers starting this week.
The ministry of energy told mining companies they will pay 10.35 US cents per kilowatt hour from January 1, up from 8.20 cents per kilowatt hour previously, one mining industry source told Reuters.
“This would have been acceptable if it only applied to emergency power ..
While the previous tariffs weren’t published by the government or mining companies, Vedanta Resources Plc said Friday the charges at its Zambian unit increased by 25%, adding $3 million a month to its costs. The old prices differed from mine to mine.
“The government’s attempt to pass through some of the higher cost of power to miners will prompt further threats of job cuts, especially from higher cost producers like Vedanta’s Konkola Copper Mines,” Clare Allenson, a Washington-based analyst at Eurasia Group, said in an e-mailed note Thursday to Bloomberg