Zambia Urges Mining Companies to Double Power-Saving Efforts Amid Severe Drought
Zambia has requested mining companies, operating in Africa’s second-largest copper producer, to double their power-saving measures to 40% of their normal demand due to the worst drought in decades impacting hydroelectric power generation.
Zesco Ltd., the state-owned power utility, has asked operators to either increase their power curtailments or source emergency power independently starting this month. First Quantum Minerals Ltd., which is responsible for over half of Zambia’s copper output, confirmed this request.
Zesco did not respond to a request for comment.
First Quantum has managed to cover more than half of its normal power requirements through imports, which has reduced the power burden on other mining companies to approximately 35%, according to Country Director Anthony Mukutuma.
In an interview on Thursday, Mukutuma explained that the company is sourcing emergency electricity mainly from Namibia and Mozambique.
“This proactive approach ensures that we are better positioned for the rest of the year,” he said, adding, “If the situation worsens, we still have our direct imports as a fallback.”
Although Mukutuma declined to comment on whether the worsening power crisis would affect production—First Quantum had previously stated in April that it did not anticipate major interruptions—he noted that the increased cost of sourcing emergency power would add approximately $0.06 per pound of copper to basic cash costs throughout 2024. This impact is double the cost the company projected in April.
Copper is vital to Zambia’s economy, generating around 70% of the country’s export earnings. Consequently, the government has been working to shield mines from the power crisis, though residential electricity users are facing daily power cuts lasting at least 12 hours.
Despite the challenges, production has remained stable thanks to cooperation between the mining industry and the government.
Sokwani Chilembo, Chief Executive Officer of the Zambia Chamber of Mines, noted that power imports from neighboring countries have helped prevent major disruptions.
“We will need to monitor the situation as we approach the fourth quarter,” he said. “For now, the regional arrangements are holding up.”
First Quantum is also supporting plans for private power companies to develop renewable energy projects in Zambia. The company is set to finalize a power purchase agreement with a group including TotalEnergies SE for wind and solar projects that will generate a combined 430 megawatts by late 2027.
Additionally, First Quantum is exploring partnerships for the development of 50 megawatts of hydropower projects in areas of Zambia away from existing plants to diversify risks, Mukutuma added.
