CEC’s 2011 profits rise to $34.46

COPPERBELT Energy Corporation Plc (CEC) has announced that its profit before interest and tax increased to US $34.46 million last year from US$15.7 million in 2010 on account of increased power uptake by the mines.

CEC, the country’s biggest supplier of power to the vast mining sector announced that its revenue increased by 18 per cent to US $200.99 million in 2011 from US$169.79 million.

“The increase in revenue is attributed to a two per cent increase in power sales volume to the mines and a tariff increase to CEC’s mining customers,” the firm which is 50 per cent owned by Realtime Technology Alliance Africa – Zambia Limited and CEC Liquid Telecommunication Limited announced.

CEC said the cost of sales, mainly comprising payments to Zesco under the Bulk Supply Agreement, increased by 19 per cent to US$146.8 million from US$122.9 million in 2010, the increase attributed to an increase in the purchases volume of two per cent and an increase in the tariff the Lusaka listed firm paid to Zesco.

CEC stated that while mines’ maximum demand increased last year to 481 megawatts from 470 megawatts and the system load factor reduced to 83 per cent, demand is expected to rise further this year, driven by expanding mining activities at existing operations and rising greenfield projects.

“A number of enhancements to CEC’s transmission network on the Copperbelt are being undertaken to supply new mining activities,” CEC stated. “These include the construction of new infrastructure at Muliashi (near Luanshya), Chambishi and Konkola North for CNMC Luanshya Copper Mines, NFC Africa and Vale / Africa Rainbow Minerals.

The development of the Kabompo Gorge Hydro project is progressing well and the project is expected to reach financial close by the end of 2012.”