FQM Secures Renewable Energy Deal to Power Zambia’s Industrial Future
First Quantum Minerals (FQM) has taken a bold step towards strengthening Zambia’s energy security and sustainability by entering into an innovative agreement to source clean, reliable power from the Kariba North Bank Extension (KNBE) energy plant.
The landmark deal—formed through a strategic partnership involving ZESCO’s subsidiary Kariba North Bank Extension Power Corporation (KNBE), GreenCo Power Services (GreenCo), and financial institutions Standard Bank Group and Stanbic Bank Zambia—introduces a forward-looking energy model that aligns industrial growth with renewable energy development.
Under the arrangement, KNBE has secured commercial debt financing from the two banks, with the investment anchored by a 13-year Power Purchase Agreement (PPA) between KNBE and GreenCo. GreenCo, in turn, will supply FQM’s Zambian mining operations with renewable energy under a separate Power Supply Agreement (PSA).
“This partnership reflects our long-term commitment to sustainability and growth of Zambia’s mining sector,” said FQM Country Director Anthony Mukutuma. “Reliable energy is fundamental to the supply of critical transition minerals. Our participation in this deal supports the broader national objective of building resilient infrastructure and a greener energy system.”
The agreement exemplifies how private-sector offtake commitments can de-risk energy projects and improve bankability, resulting in increased renewable energy generation for the national grid. FQM’s involvement is expected to set a precedent for other industrial players, encouraging further participation from independent power producers and boosting competitiveness in Zambia’s energy market.
Beyond this agreement, FQM continues to deepen its collaboration with ZESCO. The company maintains a renewable energy supply arrangement with the national utility and actively supports grid stabilization efforts. These initiatives are essential for integrating more renewable power sources and ensuring Zambia’s long-term industrial and economic development.
