Fuel and sulphur crisis hits Zambia’s Copper Belt

Production could be at risk as mines trigger contingency plans.

By Leon Louw founder of WhyAfrica and Endorphin Expeditions  

Mining companies in Zambia are bracing for the impact of increases in fuel prices and a shortage of sulphuric acid.

The ripple effect of the shutdown in the Strait of Hormuz is being felt far and wide.

First Quantum Minerals (FQM) says it expects fuel prices to impact its cost base in the second quarter.

FQM insulated against sulphur crunch

FQM’s operations in Zambia are insulated against a sulphur supply crunch though.

Its Kansanshi smelter captures sulphur dioxide produced during copper processing. I then converts it into sulphuric acid, generating its own supply.

This reduces reliance on imported sulphur or acid, helping the company remain operational at a time when the global sulphur supply is tight.

Kansanshi produces more than 1.1 million tonnes of sulphuric acid per annum.

Moreover, only 95% of the company’s Zambian copper and nickel production is recovered through flotation, with the remainder recovered through leaching using sulphuric acid.

Middle East fuel supply uncertain

But FQM operations in Zambia consume about 320 million litres of diesel annually.

Close to 60% of FQM’s diesel is supplied via refineries in the Middle East while 40% comes from India. The diesel is shipped to East African ports.

Because fuel supply from the Middle East has become increasingly uncertain, the company secured fuel from alternative locations, including ports and depots in Namibia.

They have also moved to accumulate additional contingency stocks of diesel in nearby storage systems.

Currently, First Quantum has sufficient fuel in Zambia for at least two months of operations.

In addition, they are assessing operational measures to reduce fuel consumption and improve operating efficiency.

Operationally still on track

According to Tristan Pascall, CEO of FQM the company’s investment in electrification, including trolley-assist, continue to structurally reduce fuel intensity.

“Operationally, we remain on track in Zambia, with production in line with mine plans and stronger performance expected in the second half of the year as we access higher grades,” says Pascall.

Image: In picture is the S3 pit at Kansanshi. S3 is a major new cutback into the South East Dome orebody designed to supply additional ore to the expanded processing plant, extending the mine’s life and boosting throughput. Image credit: Leon Louw for WhyAfrica.

WhyAfrica visits FQM’s Kansanshi

WhyAfrica visited FQM’s Kansanshi mine last month during the WhyAfrica Business Trip to Zambia. The trip was organised and operated by WhyAfirca’s sister company tour operator Endorphin Expeditions.

Fuel and sulphur crisis hits Zambia’s Copper Belt