FQM Secures Renewable Power Deal to Boost Zambia’s Energy Security
First Quantum Minerals (FQM) has taken a significant step toward enhancing Zambia’s energy security and sustainability by signing an innovative agreement to source clean, reliable power from the Kariba North Bank Extension (KNBE) energy plant.
This landmark deal brings together key partners—ZESCO’s subsidiary Kariba North Bank Extension Power Corporation (KNBE), GreenCo Power Services (GreenCo), and financial institutions Standard Bank Group and Stanbic Bank Zambia—to pioneer a forward-looking energy model that supports both industrial growth and renewable energy development.
As part of the arrangement, KNBE secured commercial debt financing from the two banks, backed by a 13-year Power Purchase Agreement (PPA) between KNBE and GreenCo.
GreenCo will then supply FQM’s Zambian mining operations with renewable electricity under a separate Power Supply Agreement (PSA).
“This partnership reflects our long-term commitment to sustainability and the growth of Zambia’s mining sector,” said FQM Country Director Anthony Mukutuma. “Reliable energy is essential for the production of critical transition minerals.
Our involvement in this deal supports the national vision of resilient infrastructure and a greener energy future.”
The agreement demonstrates how private-sector offtake commitments can reduce financial risk for energy projects, enhance bankability, and increase renewable power generation for Zambia’s national grid.
FQM’s leadership is expected to serve as a model for other industrial players, encouraging more independent power producers and strengthening competition in the local energy market.
FQM is also expanding its collaboration with ZESCO beyond this initiative. The company already has a renewable energy supply agreement with the utility and continues to support grid stabilization efforts—both of which are crucial to integrating more renewable power sources and promoting Zambia’s long-term economic and industrial development.
