“We are very excited to be partnering with FQM and Total Eren on this ground-breaking 430 MW project in Zambia”
Chariot Ltd (AIM:CHAR, OTC:OIGLF) has entered into a partnership to advance the development of a 430 megawatt solar and wind power project for its mining operations in Zambia.
The Africa-focused transitional energy company said its Chariot Transitional Power division, along with Total Eren, a leading France-based renewable energy independent power producer, has gone into partnership with First Quantum Minerals (TSX:FQM), a global mining and metals company.
This flagship project would complement and expand Zambia’s existing renewable energy capacity and would provide First Quantum with competitive and sustainable power for its Zambian mining operations, Chariot’s stock market announcement said.
“The project will offer significant benefits to Zambia, by unlocking some of its world-class renewable potential. It will help the country realise some of its untapped solar and wind resources by attracting large-scale foreign investment and adding significant renewable energy capacity. In line with Zambia’s Vision 2030, the project will further contribute to improving Zambia’s energy-mix, reducing expensive regional power imports and exposure to fuel prices,” said Anthony Mukutuma, First Quantum’s Kansanshi mine general manager.
“Major projects such as this underline First Quantum’s responsible mining credentials and are a critical part of its plan to reduce its carbon footprint by 30% by 2025,” he added.
Fabienne Demol, the executive vice president and global head of business development at Total Eren, said the combined solar and wind capacity would offer strong complementarity and power generation around the clock while the project is a natural fit with Zambia’s hydropower resource seasonality.
Laurent Coche, the executive director at Chariot Transitional Power, said the project further demonstrates Chariot’s commitment to assisting mining companies in Africa make the transition to renewable energy sources for their operations.
“We are delighted to get started on the project, ahead of construction commencing in 2023, and we look forward to providing further updates in due course,” Coche said.
Cenkos Securities said Transitional Power is looking to transform the energy market for mining operations in Africa, calling it a ”giant, largely untapped market”.
It has initiated coverage on Chariot with a ‘buy’ recommendation and price target of 51p; shares in Chariot are up 4.3% at 10.9p this afternoon.
“Following the Russian invasion of Ukraine, the EU has unveiled plans to make Europe independent of Russian fossil fuels by 2030, citing that gas should be sourced from US and Africa in the short-term. For Chariot, this provides a huge opportunity to sell excess gas not committed under long-term gas sales agreements in Morocco to the gas hungry European markets,” Cenkos said.
“European natural gas prices have risen circa 64% since the start of 2022 and circa 5.6 times since the start of 2021, driven by concerns oversupply and low gas storage levels,” it added.
Source: proactiveinvestors
