FQM Secures 420 MVA of Renewable Power in Landmark Agreement with ZESCO
First Quantum Minerals (FQM) and ZESCO have inked a historic Power Supply Agreement (PSA), signaling a transformative era of collaboration and sustainable energy supply.
The ten-year agreement establishes a significant milestone in the partnership between FQM and ZESCO, paving the way for a more sustainable and reliable power source for FQM’s Trident and Kansanshi mines.
Under the terms of the agreement, ZESCO will provide over 420 Megavolt Amperes (MVA) of renewable power to FQM’s Trident and Kansanshi mine sites.
This substantial power supply is poised to support FQM’s ongoing operations and underscores the company’s commitment to adopting sustainable mining practices in Zambia. The pricing structure aligns with the independent cost of service study completed by ZESCO in 2021.
During the signing ceremony, First Quantum Minerals Chief Operating Officer, Rudi Badenhorst, highlighted the pivotal role played by ZESCO’s reliable and cost-competitive power in influencing FQM’s significant investments in Zambia.
These investments include the US$1.25 billion S3 expansion at Kansanshi and a US$100 million investment in the Enterprise nickel mine. Badenhorst emphasized that these decisions were driven by the availability of sustainable and cost-competitive renewable power in Zambia.
Badenhorst expressed FQM’s enthusiasm about ZESCO’s commitment to certifying that the power supplied is from renewable sources, aligning with FQM’s sustainability goals and contributing to environmental responsibility.
He acknowledged the 10-year duration of the PSA as a symbol of the long-term commitment between FQM and ZESCO, marking a reset and a new era of collaboration.
FQM is also exploring an off-take arrangement with TotalEnergies for its 400 MW hybrid solar/wind project, aligning with ZESCO’s strategy to integrate Independent Power Producers (IPPs) into Zambia’s grid.
This move is expected to significantly boost Zambia’s renewable energy capacity and contribute to environmental sustainability goals.
Victor Mapani, ZESCO’s Managing Director, emphasized the crucial role of the mining sector in Zambia’s economy and reaffirmed ZESCO’s commitment to providing a vital supply of electricity to support its growth.
The Power Supply Agreement not only ensures a commercially and legally sustainable relationship but also aligns with ZESCO’s vision to be an effective provider of reliable and environmentally sustainable electricity by 2023.
FQM believes that ZESCO’s commitment to certifying the power supply from renewable sources is pivotal for Zambia’s transition to a low-carbon economy.
The opening up of Zambia’s grid to IPPs is seen as a crucial step towards enhancing the stability and reliability of the country’s power supply, aligning with President Hakainde Hichilema’s vision of transforming Zambia into a regional hub for energy production and distribution.
This move positions ZESCO as a leader in the region’s energy sector and contributes to Zambia’s environmental sustainability goals.
