ZESCO AND FQM SIGN 10 YEAR POWER SUPPLY AGREEMENT
On 4 November 2023, of the 20-year agreement entered between the two entities in 2003. The renewed agreement is in respect of the of FQM’s Trident (Sentinel) and Kansanshi Mines in Northwestern Province of Zambia. ZESCO Managing Director Eng. Victor Benjamin Mapani has described the renewed partnership as a great milestone that marks a new chapter in the Corporation’s relationship with its valued mining customer, which dates to 2003 when the two entities penned a 20-year Power Supply Agreement to service FQM’s Kansanshi Mine in Solwezi.
“This partnership underscores our mutual commitment to develop Zambia’s economy in general and the mining sector in particular. This milestone is a culmination of several developments over some time and the coming to fruition of months of negotiations between the parties.”
Eng. Mapani added that: “This relationship grew when the two entities entered into another agreement for the supply of power to Kalumbila mine. In the absence of a PSA, the relationship was sustained based on commitments made in a Connection Agreement. With the foregoing, the relationship between ZESCO and FQM can safely be said to have thrived on goodwill and mutual trust. Hence, this agreement puts us into a better-organized and sustainable business relationship that secures power supply to our customer.”
The Managing Director said ZESCO was to support the mining sector considering the role the industry plays in driving the country’s economic growth.
“ZESCO recognizes the crucial role that the mining sector plays in our economy, and as the engine that drives this sector, ZESCO is committed to providing the vital supply of electricity to support its growth. The synergy between the mining and energy sectors cannot be overstated; as without a reliable and affordable power supply, industrialization and development would not be possible,” he said.
“The global mining industry will continue to rely on energy, and ZESCO stands ready to meet this demand and support the sustainable growth of the mining sector, contributing positively to the economic fabric of Zambia.”
Meanwhile, FQM Chief Operating Officer, Mr. Rudi Badenhorst has applauded ZESCO’s commitment to provide electricity powered from renewable sources.
“We at FQM are particularly thrilled about ZESCO's commitment to certifying that the power supplied to us is from renewable sources. This alignment with our sustainability goals not only enhances our operations but also resonates with our ethos of environmental responsibility. It's a significant step towards reducing our carbon footprint and contributing to global environmental preservation efforts,” he said.
Mr. Badenhorst added that: “ZESCO’s strategic vision, particularly its commitment to integrating Independent Power Producers into Zambia's grid, is commendable as well. We are especially thrilled to see Zambia's grid opening to regional Independent Power Producers. This not only enhances grid stability but also ensures that President Hichilema's ambition for Zambia to capitalize on the growth of minerals critical for green transitions is realized.”
“Our plans to enter into an off-take arrangement with TOTAL for their 400MW hybrid solar/wind project align seamlessly with ZESCO's transformational strategy, showcasing an opportunity to enhance the country’s generation capability via private sector investment.”