Aim-listed diversified metals producer Jubilee Metals Group has signed a three-year power purchase agreement (PPA) with Lunsemfwa Hydro Power Company (LHPC), an independent hydropower and solar energy producer in Zambia.

Jubilee says the PPA ensures that the total power supply needs of its Roan concentrator facility and its Sable refinery will be continuously met at competitive rates to the prevailing power tariffs, beginning on September 1.

The agreement also allows Jubilee the option to secure a further 10 MW of solar-generated power discounted by more than 30% below the initial PPA rates.

Jubilee says the additional power secures the company’s future power demands to meet its expanding operational footprint.

“The successful implementation of the private PPA is a critical step towards securing a reliable and continuous power supply for our operations and addresses the current shortage of power.

“This comes at a critical time as we step up the production at our Roan and Sable operations and look to further expand our operational footprint. Our Roan operation has been impacted by power shortages, which is comprehensively addressed by this agreement,” says Jubilee CEO Leon Coetzer.

He notes that the additional power allocation of 10 MW, which holds the potential to be further scaled, ensures that the company’s immediate power demands for its operational expansion, targeting 25 000 t/y of copper processing capacity, will be met.

He explains that security of power supply is a critical factor in the successful roll-out of the company’s Zambian copper strategy.

LHPC is an independent power producer (IPP) in Zambia and owns and operates two hydropower plants in the Central province. LHPC is a member of the Southern Africa Power Pool and an active power trader in the regional market.

The IPP is building a 20 MW solar plant and plans to use its portfolio of renewable power sources to meet Jubilee Zambia's power requirements. Jubilee says the agreement highlights Jubilee's dedication to sustainable energy practices.

The power will be supplied from an integrated solar power and hydro-storage facility which is expected to be brought into operation over the coming 12 months.