First Quantum: Zambia’s energy situation remains challenging

First Quantum reports that Zambia’s energy situation remained challenging through the fourth quarter. However, the Company’s proactive strategy of securing supplementary power, primarily from Southern Africa, allowed the Company to maintain normal operations with minimal power interruptions. The annualized impact on 2025 C1 copper cash cost is estimated to be $0.07 per lb, which is included in the current guidance.

Zambia has received steady rainfall since the start of this rainy season in early November, which will continue through to the end of March. Lake Kariba levels remain significantly lower than prior years due to the pulldown of lake levels earlier in 2024, although a modest recharge has allowed water levels to rise 6% since the onset of rainy season. As such, the Company is not planning for a full return to normal in-country hydroelectricity power generation in 2025. To address the likely shortfall, the Company has put sourcing plans in place for 2025 to ensure that reliable electricity supply is available for its operations, including the start-up of the Kansanshi S3 Expansion project.

First Quantum will continue collaborating with the national electricity utility, ZESCO, and third-party energy providers to maintain a secure energy supply. Longer term, the 430 MW solar and wind project with TotalEnergies and Chariot Energy, together with new hydropower initiatives in Zambia’s Northwest and Northern Provinces, remain on schedule for commissioning by 2028. These developments are expected to bolster both First Quantum’s and Zambia’s overall energy security.