Africa’s second largest copper producer Zambia will start importing power and advance with the construction of new generation plants as it seeks an end to electricity shortages that threaten mining output.

“Cabinet has explored the option of power-renting from ships docked at sea,” government spokesman Chishimba Kambwili said on Monday.

Zambia is currently faced with a power deficit of 560 megawatts (MW) after drought struck, dropping water levels at its hydro-electric power plants. State-run power company Zesco will, therefore, ration power until the rainy season starts later in the year. Zesco has been authorized to import 100 MW to ease the deficit. However, the importation and supply cut will cost the company $287 million this year.

Following drop in electricity production, power supplies to mines were planned to be cut by up to 30 percent this week in line with the power supply agreement between the government and the mines but President Edgar Lungu has decided against this. He “directed that the mines should be considered under essential services and operations to avoid disrupting production.”

Mines account for about 50 percent of Zambia’s economy and 67 percent of exports, data from the Extractive Industries Transparency Initiative show, but it contributes just 30 percent of the government’s tax revenue. In a bid to raise gains from tax, Zambia scrapped corporate income taxes last year, raised royalties of open-pit mines to 9 percent and increased royalties on underground mines to 8 percent up from 6 percent. But with mining companies reacting with threats to shut down mines and shelve expansion plans, the government reverted to the old corporate tax and reduced royalties on open pit mines and underground operations.

With the tax disputes now settled, the government is committed to keeping the mines working. To address the power issues, Zambia will construct a 340 MW thermal power plant. Other public and private-led power stations are also expected before the end of the year.

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