Maamba Collieries Limited Announces New 300 MW Power Plant Project
The Board of ZCCM Investments Holding Plc (ZCCM-IH) has announced that Maamba Collieries Limited (MCL) has successfully reached an agreement with its anchor lenders to secure financing for the construction and installation of an additional 300 MW power plant, known as the Phase II Project.
MCL has solidified its commitment to this project by signing a 20-year Power Purchase Agreement (PPA) with ZESCO Limited, Zambia’s national electricity utility company. This agreement will ensure the long-term viability and sustainability of the Phase II Project.
Maamba Collieries Limited has a rich history, having been established as a coal mine in 1971 by the Government of the Republic of Zambia.
In 2010, the company was privatized, with Nava Bharat Singapore Limited (NBS) being selected as the strategic equity partner. Currently, NBS holds a 65% stake in MCL, while ZCCM-IH holds the remaining 35%.
In 2016, MCL set up a 300 MW coal-fired power plant as Phase I of its power generation business. The company is also a trading member of the Southern African Power Pool and generates more than 90% of its income from power sales.
The Phase II Project is expected to commence in August 2024, with an estimated construction period of 24 months, concluding in July 2026.
The total cost of the project is projected to be USD 400 million, with a consortium of debt financing approximately USD 300 million.
The new plant will be identical to the existing operation and will consist of two generating units of 150 MW each, thereby increasing the total number of generating units to four.
The new plant will utilize existing auxiliary facilities, such as the transmission line and coal preparation plant, for support infrastructure.
The Board of ZCCM-IH is committed to keeping shareholders and the market informed about the progress of the development and construction process and will provide updates in due course.
This strategic initiative marks a significant milestone for Maamba Collieries Limited and underscores its dedication to enhancing power generation capacity in Zambia, contributing to the country’s energy security and economic growth.
