ZCCM Investments Holdings has entered into a partnership with Chinese-owned Wonderful Group Services to develop a 600-megawatt coal-fired power plant in Zambia, a major energy project aimed at easing electricity shortages and supporting the country’s expanding mining sector, as reported by CNBC Africa and KITCO. The project is valued at approximately $452 million and will be developed through a special-purpose company known as Ever Great Energy Company Limited.
Under the agreement, ZCCM-IH will invest $54.2 million for a 30% equity stake in the venture, while the remainder of the financing will be sourced through a combination of equity and debt. The power station will be built in two phases, beginning with a 300MW coal-fired plant before expanding to the full 600MW capacity within five years of the first phase’s completion.
Zambia is seeking to address an estimated 1,400MW electricity deficit that has been worsened by drought-related declines in hydropower generation from the Kariba Dam, the country’s primary source of electricity. Officials say the new thermal power project will diversify the energy mix, improve energy security, and help meet rising electricity demand from mining companies as Zambia pursues its target of producing three million tonnes of copper annually by 2031.
The development reflects a broader push across southern Africa to strengthen power infrastructure amid growing industrial demand and climate-related pressures on hydropower systems. Energy analysts note that while renewable energy investments continue to expand across the region, governments are also turning to alternative baseload power sources to support economic growth, mining operations, and industrial development.
