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African Energy, First Quantum enter power sales agreement for Sese coal JV

African Energy Resources Ltd. signed a power sales agreement with the Zambian subsidiaries of First Quantum Minerals Ltd. for the purchase of 100 megawatts of power delivered to the latter's copper operations in the country for a period of 15 years.

The transaction is part of the Sese coal and power joint venture, wherein African Energy holds a 33.3% stake and First Quantum owns the remainder.

African Energy noted that First Quantum is Zambia's largest consumer of power.

The company said that the power sales agreement is in addition to the power sales term sheet executed with Zimasco Ltd. for the purchase of 150 MW of power for 15 years.

African Energy noted that Southern Africa is experiencing a major energy crisis, which drives the company's strong interest in the low-cost baseload power that can be delivered by Sese.

The Sese project is at the center of the regional transmission grid to deliver power to the entire region.

The company has scheduled a meeting with energy regulators in Botswana to finalize the permits for the project.