Jubilee Metals has announced the signing of a three-year renewable power purchase agreement with Lunsemfwa Hydro Power, an independent hydro and solar power producer in Zambia.
The diversified metals producer, with operations in SA and Zambia, said the agreement would ensure a reliable and continuous power supply for the company’s Roan and Sable operations, addressing existing power shortages.
The power purchase agreement starts on September 1 and will provide competitive rates for the total power supply needs of both operations. In addition, Jubilee has the option to secure a further 10MW of solar-generated power at a discounted rate of more than 30% below the initial power purchase agreement rates.
“This additional power allocation secures Jubilee’s future power demands, meeting its expanding operational footprint and targeting 25,000 tonnes of annual copper processing capacity,” the company said in a statement.
The agreement comes after the Zambian government approved the Open Access regime on June 10, allowing private players to access electricity transmission and distribution lines in the country. Lunsemfwa and Jubilee are among the pioneers in this government policy across the line.
“The successful implementation of the private power purchase agreement is a critical step towards securing a reliable and continuous power supply for our operations,” Jubilee CEO Leon Coetzer said. “This addresses the current shortage of power experienced and comes at a critical time as we step up production at our Roan and Sable operations and look to further expand our operational footprint.”
The power supplied from an integrated solar power and hydro-storage facility is expected to be brought into operation over the next 12 months.
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