The Zambia Chamber of Mines has disclosed that the 20% increase in the fuel pump prices has the capacity to negatively affect the operating costs for mining firms around the country.
Chamber of Mines Chief Executive Officer (CEO) Sokwani Chilembo said just like any other industry, the mining firms would be affected in terms of transportation and logistics cost, which are both key components and cost drivers of the industry.
Speaking in an interview with the Zambian Business Times – ZBT, Chilembo however said it was too early to judge if the upward adjustment in the fuel pump prices will have a negative impact on the production in the mining sector.
He explained that there are too many factors in play now and the Chamber of Mines is trying to do everything possible to see how best the situation can be managed.
The Energy Regulation Board (ERB) increased the price of petrol from K21.96 to K26.50 per litre while the price of diesel has gone up by K4.68, from K21.54 to K26.22 effective 1st April 2022 stating that the increase was necessitated by escalating global oil price.
The Chamber of Mines CEO confirmed that operating costs for the mining firms are expected to go up following this increment. Copper mining in Zambia accounts for over 70% of total export value and remains a key economic driver and barometer for the health of the local economy.
