Metal producer signs PPA in Zambia – SPE

Diversified metals producer Jubilee has signed a three-year PPA with Lunsemfwa Hydro Power Co., an independent hydro and solar energy producer in Zambia.

Jubilee said the PPA, which comes into effect from September 1, will meet the total power supply needs of copper concentrate production at the Roan concentrator and multi-metal Sable refinery at a competitive rate to prevailing power tariffs.

The agreement also gives Jubilee the opportunity to secure an additional 10 MW of solar power, at a discount of more than 30% below initial PPA energy rates.

In June, the Zambian government approved an open access regime, allowing private companies access to the country’s electricity transmission and distribution lines, in an effort to provide consumers with alternative sources of electricity and boost the development of power generation. This PPA is one of the first signed since the adoption of the open access regime.

“Our Roan operation has been affected by power shortages, which are comprehensively addressed by this agreement,” said Leon Coetzer, CEO of Jubilee. “The additional power allocation of 10 MW, which has the potential to be scaled up further, ensures that our immediate power needs for our operational expansion, targeting 25,000 tonnes of annual copper processing capacity, will be met. Security of power supply is a crucial factor in the successful rollout of our Zambian copper strategy.”

Lunsemfwa Hydro Power Co. is currently building a 20 MW project in Zambia. According to the International Renewable Energy Agency (IRENA), the country’s cumulative installed solar capacity stood at 124 MW at the end of 2023.