Ivanhoe Mines Ltd. T.IVN

First Quantum - force majeure notice from Zesco

[bogfit]

"In response to Zambia's recent declaration of a national emergency owing to a severe drought affecting power generation, copper miner First Quantum Minerals is taking measures to ensure the continuity of its operations.
 
Power utility Zesco has introduced daily eight-hour loadshedding for its retail customers and initiated consultations with mining companies to reduce power supply to the sector by 150 MW from May 1 to December 31. First Quantum’s operations are expected to have power curtailed by about 80 MW over this period.

On April 11, the company received a force majeure notice from Zesco., formalising the request for power reductions.
 
In response, First Quantum is busy finalising binding offtake agreements with third-party traders to source power from alternative sources within the Southern African Power Pool. The company is securing power from Mozambique's Electricidade de Moambique and Namibia's NamPower to mitigate the impact of reduced power supply in Zambia.

The transition to alternative power sources is estimated to incur additional costs of about $25-million for the remainder of the year, with a $0.03/lb impact on cash costs.
 
In addition to sourcing power from neighbouring countries, the miner is advancing renewable energy projects to enhance its energy resilience.  One such project is a partnership with TotalEnergies and Chariot Energy to develop a 430 MW solar and wind project, with expected commissioning dates in 2026 and 2027, respectively.
 
First Quantum is also in discussions with developers of hydro schemes in Zambia's Northwest and Northern provinces to further diversify its power sources.
 
Despite the challenges posed by the power crisis, the Vancouver-based company remains optimistic about its ability to maintain uninterrupted operations in Zambia.
 
Based on current forecasts, the company anticipates successfully substituting the curtailed power with imports, ensuring the continued production at its Zambian facilities."

First Quantum navigates Zambia power crisis through imports, renewable projects (miningweekly.com)

Competition for southern Arican power is heating up too.  First Quantum's notice was two weeks ago.

Did or did not Ivanhoe also reeived a force majeure notice from Zesco?  We don't know.


b.

[Cobalt]

"$0.03/lb impact on cash costs" All you bashing is about 3 cents a pound wow really?

[kitchensink2]

Last i checked this is an Ivanhoe.  Please post this in FM forum..

[bogfit]

"Last i checked this is an Ivanhoe"   If you wish to ignore what is happening in your part of the world about which will have a major impact upon your company’s profitably, you can go ahead and ignore these reports.  However you don’t have a right to cast scorn and sarcasm just because you disagree with the report.  If you have information of how Ivanhoe will continue to

[bogfit]

Competition for southern Arican power is heating up too.   "... BPC having to deal with high-cost electricity imports and emergency diesel generation which are currently the other options in place to supply power.   While the country continues to make efforts to generate adequate electricity to meet domestic demand, this downward trend has led to the BPC having to look out to

[Moemoney42]

"The fact is that Ivanhoe isn't the only entity seeking to import power, and that presents a competition factor in what appears to be a shrinking local resource." Which begs the question of why are you only soft bashing IVN.. what's your agenda..? Are you that choked that you missed the rally that you feel the need to single out ONE company.. why aren't you doing some DD and

[bogfit]

"Zimbabwe and Zambia – already struggling with food shortages – are now reeling from low power generation at the Kariba power station due to the same underlying cause: El Nio. The climate system has brought below-normal rainfall, which first saw farmers struggle. Now the water reserved for power generation is running low, with the water level at 15% of total capacity and falling. If the