By Stella Mapenzauswa
Harare - Zimbabwe's mining sector has taken another knock from erratic electricity cuts that have hit the country as its cash-strapped state power agency struggles with imports, a senior official said on Thursday.
Zimbabwe buys more than a third of its electricity from South Africa, Mozambique, Zambia and the Democratic Republic of Congo but has in recent years grappled to pay its bills due to severe foreign currency shortages.
The Zimbabwe Electricity Supply Authority (ZESA) has also been hard-pressed to repair power generation machinery, while vandalism of its equipment and inadequate coal supplies to its main thermal power station have contributed to frequent power cuts that have disrupted industry.
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On Thursday Zimbabwe Chamber of Mines President Jack Murehwa said mine production - now the country's top foreign currency earner - was frequently being brought to a standstill due to power-rationing disruptions by ZESA, most of which were implemented without any warnings to miners.
"Any unscheduled power cuts, especially if they are unscheduled and prolonged, have serious implications on production," Murehwa said in written response to questions from Reuters.
"In a general sense, four hours lost through an unscheduled power cut equates to around 18 hours of lost production. In some instances, the negative effects of power cuts are extremely expensive and result in serious loss of revenue," he added, without giving figures.
The power disruptions have worsened the woes of an industry hit by mine closures in the last five years, as operating costs soared in a recession marked by the highest rate of inflation in the world and shortages of fuel and foreign currency.
Mining has emerged as Zimbabwe's chief foreign currency earner over the last five years as the country's once-thriving agricultural sector collapsed following the government's seizure of white-owned farms to give to landless blacks.
Last month South African utility Eskom denied Zimbabwe newspaper reports that it would invest $37-million towards the expansion and upgrade of ZESA's power station in the north-western town of Hwange.
In another indication of cash-flow problems, ZESA this week came onto the local market with an offer of ZIM$500-billion worth of investment bills to fund managers, insurance companies and commercial banks "to finance power imports and coal purchases".
"We are cognisant of the difficulties being faced by the power utility (but) while the difficulties last, communication between the mines and the power utility would assist in ensuring that the power cuts are scheduled rather than erratic," the Chamber of Mines's Murehwa said.
The sector has also been rattled by government plans to amend Zimbabwe's mine laws to cede a 51-percent stake in all foreign-owned mines to the state, a move seen driving away foreign investment key to the industry's growth.
Zimbabwe's power crunch has exacerbated an economic crisis marked by chronic shortages of food, and fuel, soaring unemployment and triple-digit inflation, which hit a record high of 782 percent last month.
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