Zambia’s Mines Rely on Eskom as Hydropower Crisis Threatens Kariba Dam Shutdown

Zambia’s largest mines are turning to South Africa’s Eskom Holdings to combat a severe energy crisis caused by a historic drought. This crisis has depleted the country’s hydropower resources, threatening the shutdown of the Kariba Dam, the world's largest man-made reservoir, which supplies the majority of Zambia's power. The drought has reduced power generation, leaving households with only three hours of electricity per day.

To keep mines operational, companies like First Quantum Minerals Ltd. have turned to power imports from South Africa. Eskom, which has been supplying 250 megawatts of electricity since August, is helping to offset the 40% power supply cuts imposed by Zambia’s state utility, Zesco. Efforts are underway to increase Eskom’s power supply, with plans to double the amount in the coming month, facilitated by Africa GreenCo, a regional electricity trading company.

Zambia’s energy crisis has severely impacted its mining sector, which accounts for around 50% of the country’s power demand and 70% of its export earnings. The country’s power generation capacity has plummeted from 3,777 megawatts to just 1,019 megawatts, forcing mine operators to seek more expensive regional power solutions.