Economist Attributes Low Copper Export Earnings in September to Power Deficit
An Economist has attributed the reported 6.4 percent reduction in Zambia’s copper export earnings in September 2024, to the current power deficit which has negatively affected production in the mining sector.
Speaking in an interview with Money FM News, Emmanuel Zulu said the reduction also gives a true picture that the reopening of Mopani and Konkola Copper Mines (KCM) is yet to take a full scale of production.
Mr. Zulu further charged that the country has failed to take advantage of the increase in copper prices on the London Metal Exchange (LME), a situation that is worrying.
“This is quite worrying but it reveals a true picture that that the reopening of Mopani and Konkola Copper Mines (KCM) is yet to take full scale in terms of benefiting the country in output volumes.”
“The reduction also is worrying and mostly it could be attributed to power outages that reduce output hours and we haven’t taken advantage of the increase in prices of copper on the London Metal Exchange,” Mr. Zulu stated.
He said this entails that it will take some time for the country to realize the full benefits of Mopani and KCM coming on board.
“This translates to the notion that production in these two giant mines may take longer. Probably we may start seeing the full benefits in the second half of 2025,” Mr. Zulu said.
Mr. Zulu hopes that copper prices will remain high up to the time when Zambia increases its copper production.
Zambia’s export earnings from refined copper decreased by 6.4 percent from K16.4 billion in August 2024 to K15.4 billion in September 2024.
According to Zambia Statistics Agency (ZamStats), refined Copper export volumes decreased by 2.0 percent from 64.3 thousand metric tonnes in August 2024 to 63.0 thousand metric tonnes in September 2024.
The Agency said the cumulative volume of refined copper exported from January to September 2023 was 594.7 thousand metric tonnes, while exports during the same period in 2024 stood at 574.5 thousand metric tonnes, representing a 3.4 percent decrease.
Copper prices on the London Metal Exchange market for the corresponding months increased by 3.2 percent from US$8,963.7 per metric tonne in August 2024 to US$9,254.5 per metric tonne in September 2024.
