Zambia, Africa's second-largest copper producer, is facing a severe energy crisis due to a historic drought, and starting September 1, there will be planned power cuts of up to 17 hours per day. This shortage is threatening the performance of the mining industry.

Jubilee Metals announced on August 27 that it has signed a three-year renewable electricity purchase agreement with Lunsemfwa Hydro Power Company. The copper processing firm made the move amidst a power crisis that affects its performance in Zambia. 

"The successful implementation of the private power purchase agreement is an essential step to ensure a reliable and continuous power supply for our operations and to address the power shortage we are currently experiencing," commented Jubilee Metals CEO Leon Coetzer. 

ZESCO has increased power rationing hours from 14 to 17 hours daily, effective 1st September, this year.

Energy Minister, MAKOZO CHIKOTE announced this today in Lusaka during the Energy Regulation Board -ERB- weekly briefing. pic.twitter.com/ppsl5dYvr8

— ZNBC (@znbctoday) August 16, 2024

Through the deal with Lunsemfwa Hydro Power, Jubilee Metals joins Canada's First Quantum Minerals, Zambia's leading copper producer, in securing alternative power sources. The new deal will come into effect on September 1, 2024.  

Since 2022, First Quantum has planned to source energy from renewable sources, including a 230 MW solar power plant starting construction in 2025 and a 200 MW wind farm, as well as hydroelectric projects in northern Zambia.

(15) Emmanuel Mwamba - Zambia asks mines to curtail normal power use by... | Facebook

Zambia's national electricity company, ZESCO, announced a 40% reduction in energy supply to mining companies in June. With 80% of the country's energy supply dependent on hydroelectricity, the situation is critical. While purchasing electricity from other suppliers is helping mining companies mitigate the impact on production, it is also increasing costs. First Quantum expects the cost of each pound of copper produced in Zambia to rise by $0.06 for the rest of the year.

Emiliano Tossou