Maamba Collieries Limited (MCL), has reached an agreement with anchor lenders in relation to financing the construction and installation of an additional 300-megawatt power plant.
The total cost of the Project is estimated at 400 million United States dollars, of which a consortium of debt will finance approximately 300 million United States dollars.
According to ZCCM-Investment Holdings (ZCCM- IH), which holds 35 percent shareholding in the company, MCL has already signed a 20-year Power Purchase Agreement with ZESCO for Phase 2 of the Project.
ZCCM-IH Board Secretary Charles Mjumphi disclosed in a notice to the shareholders that it is expected that the construction period will be 24 months, from August 2024 to July 2026.
Mr Mjumphi said the Phase 2 Plant will be identical to the current operation and will consist of two generating units of 150 megawatts each, increasing the total number of generating units to four.
“The new plant will utilise existing auxiliary facilities for support infrastructure such as the transmission line and coal preparation plant,” he said.
ZANIS reports that MCL set up a 300-megawatt coal-fired power plant in 2016 as Phase I of its power generation business.
The firm is also a trading member of the Southern African Power Pool and currently generates more than 90 percent of its income from power sales.