Maamba Collieries Secures $300M for 300-Megawatt Power Plant Expansion

Maamba Collieries Limited has secured $300 million in financing for the construction and installation of a new 300-megawatt power plant as part of its Phase 2 expansion project. This significant development is scheduled to commence in August 2024, with completion anticipated by July 2026.

The project, with a total cost of $400 million, will be largely funded through a $300 million debt consortium. The expansion will see the addition of tow 150-megawatt generating units, effectively doubling the current capacity of Maamba Collieries. These new units will mirror the existing operation, bringing the total number of generating units to four.

A key aspect of the expansion is the utilisation of existing auxiliary facilities, such as the transmission line and cal preparation plant, ensuring an efficient integration of the new units into the current infrastructure. This approach not only maximises resources but also minimises additional construction costs.

In a significant move to secure the project’s future, Maamba Collieries has signed a 20-year Power Purchase Agreement with ZESCO Limited. This long-term agreement underscores the project’s importance in bolstering Zambia’s power generation capacity and supporting the country’s energy needs.

The successful financing and planned expansion of Maamba Collieries highlight the company’s commitment to enhancing its operational capacity and contributing to Zambia’s energy sector growth.