To help close Zambia’s 1 400 MW baseload electricity generation deficit and reduce its exposure to drought-affected hydroelectric supply, mining and energy investment holding company ZCCM Investments Holdings (ZCCM-IH) is investing $54.2-million in a new 600 MW thermal power plant in the country’s Sinazongwe district for a 30% stake in the plant.

This investment will directly support the mining operations across ZCCM-IH’s portfolio that depend on stable grid power and is in line with Zambia’s target of ramping up country-wide copper production to three-million tonnes a year, says ZCCM-IH CEO Kakenenwa Muyangwa.

Construction of the new power plant in Sinazongwe started in late 2025 and foundation works are under way, with most equipment already bought or in transit, he adds.

The plant, located in Southern province, is situated in the country’s principal coal-producing region and in the same corridor as the Maamba coalfields that supply ZCCM-IH’s existing Maamba Energy power station. The new thermal power project is, therefore, within the company’s established area of energy interest and close to its existing coal value chain.

The development of the power station includes a dedicated coal mine on an 8.15 ha site to fuel the plant, consequently reducing transport costs and reliance on imported coal.

Undertaking the turnkey engineering, procurement and construction scope of work is Singapore-based energy contractor Ziquan Group, which has delivered thermal plants in Zimbabwe, the Democratic Republic of Congo and China.

The power plant will be developed in two phases through Ever Great Energy Company (EGE), alongside majority-partner energy generation company Wonderful Group Services.

Phase 1 entails the construction of a 300 MW coal-fired plant comprising two 150 MW units with circulating fluidised bed combustion boiler technology that reduces its environmental footprint, supported by a water treatment facility and transmission infrastructure.

Phase 2 will expand capacity to 600 MW within five years of Phase 1’s completion, subject to the finalisation of the conditions precedent.

“ZCCM-IH is engaging constructively with the relevant authorities and is confident in the merits of the transaction. As with any regulatory process, the timing and final determination rest with the authorities, and ZCCM-IH will update the market accordingly,” says Muyangwa.

The thermal power plant is being developed as a grid-connected operation that has a power purchase agreement with State-owned utility company Zesco, with the power it generates being evacuated to the national grid through transmission infrastructure connecting to the Muzuma substation in Choma.

“The 30% stake is deliberately sized to give the company meaningful alignment in a nationally significant asset without requiring substantial financial exposure,” he says.

At 600 MW, the plant will further address a significant share of the national peak deficit – a meaningful contribution to a challenge that ultimately requires several complementary generation projects across different technologies. For ZCCM-IH, the investment reflects its role as a catalyst for investment that strengthens the foundations of Zambia’s mining-led growth, Muyangwa notes.

Reliable baseload power is a prerequisite for the ambition of reducing peak generation deficits, attests Muyangwa, adding that this endeavour underpins the operating environment for the mining assets across ZCCM-IH’s portfolio.

Muyangwa further says that as an investment holding company, ZCCM-IH deploys returns from its portfolio in line with its capital allocation priorities of reinvestment in existing assets, funding new strategic investments, managing the balance sheet and delivering value to shareholders.

“The Ever Great investment is also expected to be earnings-accretive. On a pro forma basis, it is expected to improve earnings per share by ZK0.88,” he says.



The construction and operation of the thermal power plant, together with the associated coal mine, water treatment facility and transmission works, will create significant direct and indirect employment, with opportunities for skills development and the growth of local suppliers over the life of the project, he elaborates.