The Board of ZCCM Investments Holding Plc (ZCCM-IH) has proudly announced that Maamba Collieries Limited (MCL) has successfully secured financing for a new 300 MW power plant, known as the Phase II Project. This significant achievement was made possible through an agreement with its anchor lenders.
Demonstrating its unwavering commitment to this project, MCL has signed a 20-year Power Purchase Agreement (PPA) with ZESCO Limited, Zambia’s national electricity utility company. This agreement ensures the long-term sustainability and viability of the Phase II Project, reinforcing MCL’s dedication to Zambia’s energy future.
Maamba Collieries Limited, with a rich history dating back to its establishment as a coal mine in 1971 by the Government of the Republic of Zambia, continues to play a vital role in the country’s energy sector. In 2010, the company was privatized, with Nava Bharat Singapore Limited (NBS) becoming the strategic equity partner. Currently, NBS holds a 65% stake in MCL, while ZCCM-IH retains the remaining 35%.
MCL’s journey in power generation began in 2016 with the setup of a 300 MW coal-fired power plant as Phase I of its business. As a trading member of the Southern African Power Pool, MCL generates more than 90% of its income from power sales, highlighting its significant contribution to the region’s energy supply.
The Phase II Project, set to commence in August 2024, is expected to span a construction period of 24 months, concluding in July 2026. The project carries a total estimated cost of USD 400 million, with approximately USD 300 million financed through a consortium of debt.
The new plant will mirror the existing operation, consisting of two generating units of 150 MW each, thereby increasing the total number of generating units to four. Additionally, the new plant will utilize existing auxiliary facilities, such as the transmission line and coal preparation plant, ensuring efficient support infrastructure.
The Board of ZCCM-IH is dedicated to keeping shareholders and the market informed about the progress of this development and will provide timely updates throughout the construction process.
This strategic initiative represents a significant milestone for Maamba Collieries Limited, underscoring its dedication to enhancing power generation capacity in Zambia. By contributing to the country’s energy security and economic growth, MCL continues to demonstrate its commitment to a sustainable and prosperous future for all Zambians.