ZCCM-IH takes 30 percent stake in 600mw Sinazongwe Coal Plant to cut hydro dependence

ZCCM Investments Holdings Plc has announced a US$54.2 million investment to help close Zambia’s estimated 1,400Mega Watts (MW) baseload deficit and reduce exposure to drought-affected hydroelectric supply. The state investment firm said the investment would go toward developing a 600MW thermal power plant in Sinazongwe District of Southern Province. The plant will be held within a special purpose vehicle, Ever Great Energy Company Limited, developed jointly with Wonderful Group Services Limited, according to a statement issued in Lusaka on Monday .

ZCCM-IH will hold a 30 pervent equity interest in Ever Great under the deal and the project will be rolled out in two phases. Phase 1 comprises a 300MW coal-fired thermal plant made up of two 150MW generation units using Circulating Fluidized Bed Combustion boiler technology. “This joint venture embodies shared prosperity.

Wonderful Group brings a proven track record and exceptional capability in capital mobilisation and the execution of complex projects on time,’” said Kakenenwa Muyangwa, Chief Executive Officer of ZCCM-IH. Muyangwa said phase 1 would be supported by a water treatment facility and transmission infrastructure connecting to the Muzuma substation in Choma to evacuate power to the grid. He stated that capacity would be doubled to 600MW in Phase 2, within five years of Phase 1 completion and development also includes the establishment of a coal mine within an 8,150-hectare site in Southern Province.

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“The Engineering, Procurement and Construction will be undertaken on a turnkey basis by Ziquan Group (Singapore) Pte Limited, an EPC contractor that has delivered thermal plants in Zimbabwe, DRC and China,” Muyangwa said. He added that a transparent dividend framework had been established, with predetermined dividends to unlock direct value for ZCCM-IH shareholders as soon as commercial operations turn a profit. Muyangwa stated that the transaction remains conditional upon approval by the Competition and Consumer Protection Commission.

He noted that the consideration represents 4.24 percent of its market capitalisation as at 15 May 2026 and was not classified under any category by virtue of size under Lusaka Securities Exchange listings rules. “This joint venture combines ZCCM-IH’s investment strength with Wonderful Group’s industrial expertise. Our 600MW project goes beyond power generation, it is a catalyst for economic growth, job creation, and industrial stability in Zambia,” said Huang Yaochi, Wonderful Group Chief Executive Officer. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR

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