Jubilee Secures Renewable Energy Deal With Lunsemfwa Hydro Power Company In Zambia

Jubilee, a diversified metals producer operating in Zambia and South Africa, has announced the signing of a three-year renewable power purchase agreement with Lunsemfwa Hydro Power Company (LHPC), an independent hydro and solar power producer in Zambia. The agreement, which will commence on September 1, 2024, ensures that Jubilee’s power supply needs at its Roan and Sable operations will be fully met at competitive rates compared to prevailing power tariffs.

The power purchase agreement includes an option for Jubilee to secure an additional 10 megawatts (MW) of solar-generated power at a discount of over 30% below the initial power purchase rates. This additional power allocation is intended to support Jubilee’s expanding operations and future energy demands.

Leon Coetzer, CEO of Jubilee, highlighted the significance of this agreement, “The successful implementation of the private power purchase agreement is a critical step towards securing a reliable and continuous power supply for our operations, especially as we scale up production at our Roan and Sable facilities. Our Roan operation has faced power shortages, which this agreement effectively addresses. The additional 10MW of power, which can be further increased, ensures we meet our immediate power needs as we expand our operational footprint to achieve an annual copper processing capacity of 25,000 tonnes. Reliable power supply is crucial for the successful execution of our copper strategy in Zambia.”

Lunsemfwa Hydro Power Company is a well-established independent power producer in Zambia, operating two hydropower plants in the central province. The company is also a member of the Southern Africa Power Pool and an active participant in the regional energy market. As part of this agreement, LHPC is building a 20MW solar plant and plans to supply Jubilee Zambia’s power needs from an integrated solar and hydro-storage facility that is expected to become operational within the next 12 months.

This agreement reflects Jubilee’s commitment to sustainable energy practices and aligns with Zambia’s recent governmental policies promoting renewable energy. On June 10, 2024, the Zambian government approved an Open Access regime, allowing private entities to utilize the country’s electricity transmission and distribution infrastructure, providing consumers with alternative electricity sources and encouraging the development of new power generation projects. Jubilee and LHPC are among the first to implement this policy, marking a significant step towards expanding Zambia’s renewable energy sector.