Jubilee Metals has entered into a three-year power purchase agreement (PPA) with Lunsemfwa Hydro Power Company (LHPC). This independent Zambian energy producer specialises in both hydropower and solar energy. Under the terms of the agreement, Jubilee ensures a stable and cost-effective power supply for its Roan concentrator facility and Sable refinery, beginning from 1st September. The arrangement guarantees competitive rates relative to the current electricity tariffs.
Additionally, the agreement gives Jubilee the opportunity to secure an extra 10 MW of solar-generated power at a discount of over 30% compared to the initial PPA rates. This added capacity is essential for the company to meet its expanding energy needs as operations grow.
Jubilee’s CEO, Leon Coetzer, emphasised the significance of this deal, pointing out that reliable and uninterrupted power is crucial, particularly as they increase production at Roan and Sable. The company had faced power shortages, but this agreement directly addresses those issues. Coetzer also mentioned that the additional 10 MW of power, with potential for further expansion, will ensure their operational growth can proceed as planned, aiming for a copper processing capacity of 25,000 tonnes per year. Securing a dependable power source is vital for the success of Jubilee’s copper strategy in Zambia.
Lunsemfwa Hydro Power Company, which operates two hydropower plants in Zambia’s Central province, is also constructing a 20 MW solar plant. As a member of the Southern Africa Power Pool, LHPC is actively engaged in the regional power trading market. The agreement underscores Jubilee’s commitment to sustainable energy, with plans to integrate solar and hydro-storage facilities to meet the company’s power needs in Zambia over the next 12 months.
The partnership between Jubilee and LHPC highlights the strategic importance of securing renewable energy sources, ensuring stability and sustainability in Jubilee’s expanding Zambian operations.
Jubilee Metals Group plc (LON:JLP) is a diversified metal recovery business with a world-class portfolio of projects in South Africa and Zambia. The Company’s expanding multi-project portfolio across South Africa and Zambia provides exposure to a broad commodity basket including Platinum Group Metals, chrome, lead, zinc, vanadium, copper and cobalt.
