Relief for Zambian Copper Mines

South African electricity giant Eskom Holdings SOC Ltd. has become a surprising power source for some of Zambia's biggest copper-producing mines.

The move to look beyond the nation’s borders for a power source has been sparked by the historic drought, which has stifled the hydropower turbines on which Zambia relies for 85% of its energy. The shift towards a diversified energy portfolio and importing power from around the region will save domestic power supply for more Zambian homes, hospitals and schools.

For mining firm Quantum Minerals Ltd., power imports from Eskom are mitigating the impact of the energy shortfall. According to Anthony Mukutuma, a director at First Quantum’s Zambian unit, they “expect power supply to First Quantum Minerals operations to continue uninterrupted.”

Eskom’s transmission unit has a deal to supply 250 megawatts of power - equivalent to 10% of Zambia’s national demand - to Zambia and has been doing so since August, the electricity provider said in reply to questions this week. 

There are plans to double the energy import within the month under a separate deal with Africa GreenCo, an energy trading company. 

These new energy deals, which are mitigating the effects of the drought on energy supply, are mainly thanks to the government's new rules. The government is allowing open access to power transmission lines, enabling customers like mines to source their energy privately. 

First Quantum is one of Zambia's largest copper mining companies, accounting for around half of the country’s copper output. It also operates Africa’s biggest nickel mine. The industry makes up about half of the country’s national power demand. 

Mining is a key part of Zambia’s economy. Keeping mines running helps protect and grow a major source of formal employment, meaning Zambians can continue to put food on the table for their families.

The government has sought to shield the mining industry, which generates about 70% of export earnings, from the worst of the power shortage. 

However, relief may be on the way. The Ministry of Green Economy and Environment forecasts that most of Zambia will receive normal to above-normal rains, with thunderstorms in October. The rains will start in the western part of the country, feeding Kariba, the world’s biggest man-made reservoir. 

The La Niña weather phenomenon increases the chances of good rains for Zambia’s hydropower dams, and a new gas-fired power plant in neighbouring Mozambique will add about 450 megawatts to the regional grid by early 2025. 

Image courtesy of Copperbelt Energy Corp.