Paraibuna May Cut More Production - Brazil
Thursday, June 14, 2001
bnamericas.com
Brazilian zinc smelter Paraibuna may cut production a further 12% to a 71,000tpy rate because of the country's power crisis, a spokesperson for owners Paranapanema Group told BNamericas.com. "It is something we are considering, but nothing has been decided and no decision is likely for another two weeks. Talks continue between state and federal authorities and so it's not certain if more reductions will be required," he added.
The Minas Gerais smelter reduced output 13% to 81,000tpy from a capacity rate of 94,000tpy in response to government calls for a 25% cut in electricity consumption. Paraibuna consumes 426GW and self-generates 339GW, leaving a shortfall of 87GW that has to be bought from the grid.
Meanwhile it is building a 236MW hydroelectric plant due for completion in two years. The company continues to study a possible near doubling of capacity to 170,000tpy at Paraibuna. "They're not affected in any way by the power rationing," the spokesperson said. A decision is due at year-end.
GROUP WIDE
The rest of Rio de Janeiro-based Paranapanema's operations are variously affected by the energy crisis. Its 220,000tpy Caraiba copper smelter at Camacari in Bahia state, northeast Brazil, has cut production by 25% (44,000tpy) to meet government targets. It consumes 366GW, which it buys from the grid because it has no self-generation capacity. Paranapanema is also considering almost doubling Caraiba's capacity to 380,000tpy.
Its Eluma division, which produces semi-finished copper and copper-alloys in Sao Paulo, Espirito Santo and Rio de Janeiro states, is having to cut output by 25%, or some 50,000tpy. It consumes 795GW, produces 758GW via hydro-power and 70GW by thermo-generation. Paranapanema's Mamore division mines 11,750tpy of tin plus by-products. Its mining operations in the country's north are unaffected by rationing as power restrictions do not yet apply - and will remain untouched even if requested rationing starts as planned on July 1 as it is self-sufficient in electricity.
But its metal-processing plant in Sao Paulo state has had to reduce consumption by 25%. "Like Minas Gerais, there are talks between state and federal authorities, so it is unclear what will happen," the Paranapanema spokesperson said. He added: "We are not selling any of our power to the grid. All the electricity that we produce, we consume."
BNamericas |
