ZESCO and First Quantum Minerals (FQM) say they have entered into a 10-year Power Supply Agreement (PSA), in which 420 Megavolt Amperes (MVA) of renewable energy would be reportedly supplied to the mining firms.
Under the terms of the PSA, ZESCO would supply over 420 MVA of renewable power to FQM’s Trident and Kansanshi mine sites, according to FQM Chief Operating Officer, Rudi Badenhorst.
Badenhorst said this during the signing of the agreement recently in Lusaka.
He said the 10-year agreement marked an important milestone in the relationship between the two companies and represents a new era of collaboration and sustainable energy development in Zambia.
“This substantial power supply will support FQM’s ongoing operations and underscore its commitment to sustainable mining practices in Zambia,” Badenhorst stated.
He added that pricing was aligned with the independent cost of service study of ZESCO completed in 2021.
Bandehorst stated that FQM’s significant investments in Zambia were driven by the availability of reliable and cost-competitive power provided by ZESCO.
He noted that these investments would create many of jobs.
“The 10-year duration of the PSA symbolises the long-term commitment of the FQM-ZESCO relationship, marking a reset and a new era of collaboration and constructive engagement,” Badenhorst stated.
ZESCO Managing Director, Victor Mapani, said the power utility company recognised the crucial role that the mining sector played in Zambia’s economy.
Mapani said that ZESCO was committed to providing the vital supply of electricity to support growth of the mining sector.
“To meet this demand and support the sustainable growth of the mining sector, continue contributing positively to the economic fabric of Zambia, ZESCO will continue to manage the relationships between critical customers and even the small customers in total,” he said.
Mapani stated that signing of the agreement was not only a significant step towards ensuring a commercially and legally sustainable relationship, but also aligned with ZESCO’s vision to be and effective provider of reliable and environmentally sustainable electricity by the year 2030.
“The integration of this project into the Zambian grid will significantly boost Zambia’s renewable energy capacity and contribute to the country’s environmental sustainability goals,” Mapani said.
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