Copper production in Democratic Republic of Congo, Africa's top producer, slumped 8.2 percent year on year in the third quarter due to power shortages and low metal prices, the chamber of mines said. The mining sector accounts for about 20 percent of the central African nation's gross domestic product (GDP) but falling mineral prices have threatened tax revenue and economic growth. The government has pledged to promote agriculture and services.
In a report seen by Reuters on Saturday, the industry group said Congo produced 252,057 tonnes of copper in the third quarter, down about 22,500 tonnes from the same period last year. The chamber says electricity deficits hurt production by forcing operators to rely on expensive imports from neighbouring Zambia, which has hit by its own power problems, or even costlier generators.
Congo surpassed 1 million tonnes of output in 2014 for the first time in its history last year but the chamber expects that figure to dip by five percent to about 980,000 tonnes this year. Glencore's Katanga Mining unit suspended copper and cobalt production at one of its mines in September for 18 months, citing the low price of copper and a need to reduce operating costs. The mine had accounted for 15 percent of Congo's copper output in 2014.