In a strategic move to fortify its energy supply chain, Jubilee Metals Group has finalized a three-year Power Purchase Agreement (PPA) with Lunsemfwa Hydro Power Company (LHPC), a prominent independent power producer in Zambia. Effective September 1, 2024, the deal guarantees a consistent and competitively priced stream of electricity for Jubilee’s key Zambian assets, the Roan concentrator facility and the Sable refinery.
This agreement directly addresses previous operational hurdles caused by power supply instability. Jubilee’s CEO, Leon Coetzer, highlighted that past power shortages had negatively impacted production. This PPA is designed to eliminate that vulnerability, providing the stable energy foundation necessary for the company’s ambitious growth strategy. Securing a reliable power source is a cornerstone of Jubilee’s plan to expand its copper processing capacity to 25,000 tonnes per year.
A key feature of the PPA is the significant flexibility it offers for future expansion. Beyond meeting current demands, the agreement includes an option for Jubilee to procure an additional 10 MW of solar power. This future capacity comes at a substantial discount of over 30% compared to the initial PPA rates, allowing the company to scale its energy consumption cost-effectively as its operations grow.
The partnership leverages the growing capabilities of LHPC, a key player in the Southern Africa Power Pool. To fulfill the agreement, LHPC is constructing a new 20 MW solar plant. The power supplied to Jubilee will originate from an advanced integrated solar and hydro-storage facility, which is projected to be fully operational within 12 months. This combination of renewable energy sources underscores a commitment to both reliability and environmental stewardship.
By securing its power from a blended hydro and solar source, Jubilee Metals Group is not only ensuring its operational future but also aligning with global trends toward sustainability. This PPA serves as a clear example of how the mining industry can proactively reduce its carbon footprint while pursuing strategic growth, creating a more resilient and responsible path forward for its Zambian operations.
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