First Quantum Minerals (FQM) and hydropower developer Anzana Electric Group announced a partnership to develop up to 50 megawatts (MW) of hydropower capacity in northern Zambia by 2030. The electricity will supply FQM’s mines in North-Western Province through a wheeling arrangement with state-owned utility Zesco.
FQM, which produces copper, gold, and nickel, said the project will secure baseload power to ensure continuous operations at its mining facilities. The site in northern Zambia was chosen for its relative stability, being less exposed to seasonal hydrological fluctuations that affect much of the country’s hydropower-dependent grid.
The move comes as Zambia seeks to diversify its energy mix and reduce reliance on dams, which remain vulnerable to climate shocks. The 2024 drought caused significant disruptions in hydropower generation, prompting authorities and industrial operators to accelerate solar and other renewable projects to enhance grid resilience.
By developing new hydropower capacity in a more stable northern region, FQM aims to ensure reliable energy for its mines while supporting broader grid stability. The project may also facilitate integration of variable renewable capacity, complementing Zambia’s ongoing push toward a more diversified electricity sector.
Zambia relies heavily on hydropower, which accounts for more than 85 percent of its electricity generation. While this has historically provided a low-cost and renewable energy source, it leaves the national grid highly vulnerable to climatic variations. Prolonged droughts, such as the severe 2024 dry season, have disrupted production at major dams, forcing load shedding and increasing operational risks for large industrial consumers, including mining companies.
More Read
Zambia has long relied on hydropower as the backbone of its electricity supply, with more than 85 percent of national generation coming from dams on the Zambezi and its tributaries. While hydropower provides renewable and relatively low-cost energy, it exposes the grid to fluctuations in water availability. Severe droughts, such as the 2024 dry season, caused critical shortages, leading to power rationing, increased operating costs for industrial consumers, and disruptions in economic activity across multiple sectors.
Background to Zambia’s mining industry
Mining is a cornerstone of Zambia’s economy, accounting for a significant portion of GDP and foreign exchange earnings, with copper as the country’s primary export. First Quantum Minerals operates some of the largest copper, nickel, and gold mines in North-Western Province, where consistent electricity supply is essential for smelting, processing, and extraction operations. Even brief power interruptions can lead to significant production losses, equipment damage, and operational inefficiencies, underscoring the need for secure, reliable energy sources.
To mitigate energy risks, mining companies in Zambia have increasingly explored private power generation and “wheeling” arrangements. Wheeling allows electricity generated at a privately-owned facility to be transmitted through the national grid to a designated industrial customer, ensuring that mines can access steady power without relying solely on the national supply. This approach reduces exposure to grid volatility while leveraging existing transmission infrastructure.
While Zambia has accelerated investments in solar energy and other renewable technologies to diversify the grid, hydropower remains dominant. Developing new hydropower capacity in regions less exposed to seasonal water fluctuations such as northern Zambia represents a strategic compromise: it provides baseload power for heavy industry while complementing variable renewable sources. The northern region’s rivers and topography make it less susceptible to drought-induced generation shortfalls than the southern and central hydropower basins.
The government of Zambia has also emphasized energy security as part of its industrial strategy, encouraging private-public partnerships to strengthen supply for mining and other high-demand sectors. Reliable energy is critical not only for production continuity but also for attracting foreign investment, supporting export competitiveness, and meeting climate and sustainability targets.
Experts note that projects like FQM’s northern hydropower initiative have wider benefits beyond the mining sector. By adding capacity in underutilized regions, such developments can stabilize local grids, reduce reliance on older, climate-vulnerable dams, and support the integration of solar and other renewable energy projects. In addition, such projects contribute to regional development by creating construction and operational jobs, improving infrastructure, and enabling industrial expansion in areas previously underserved by reliable electricity.
In summary, while Zambia’s push for solar and other renewables continues, hydropower projects located in climate-resilient zones remain a key element in securing baseload electricity for industrial operations, particularly mining. By combining private generation, wheeling arrangements, and strategic siting, companies like First Quantum Minerals are helping to bridge the gap between national energy limitations and the growing demand for reliable, continuous power in one of Africa’s most energy-intensive sectors.
