CAFCA says rising investment in the mining sector is creating new opportunities for electrical infrastructure suppliers despite growing pressure from rising global copper prices.
The cable manufacturer has supplied major mining operations in Zimbabwe, including Zimplats, Unki and Karo, through contractors, providing electrical infrastructure for mine development and expansion projects.
The company said increased investment in gold, platinum group metals (PGMs) and lithium mining was driving demand for electrical products such as cables, which form a key part of power systems.
“Cafca comes in mostly from an electrical infrastructure perspective,” the company said, adding that it had contributed to the development of electrical reticulation projects at major mines in Zimbabwe and beyond.
However, rising copper prices have emerged as a major challenge for the manufacturer, which relies heavily on copper as a key raw material.
According to CAFCA, copper prices averaged around US$9 500 per tonne last year but have since risen by about 40 percent, breaching the US$14 000 per tonne mark earlier than previously anticipated.The company attributed the increase to supply chain disruptions, geopolitical tensions, growing copper demand from artificial intelligence infrastructure and disruptions at a major Indonesian facility.Cafca said the sustained increase in copper prices had affected both the company and downstream users who rely on copper for construction and infrastructure projects.
Despite the cost pressures, the company said it had taken steps to secure copper stocks and reduce the impact of price volatility on customers.
“We went ahead in securing stock in order to prevent that shock from being passed on to our customers,” Cafca chief executive officer Vimbayi Nyakudya said.
The company said it had sufficient production capacity to meet growing demand from mining companies and utilities.
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