The Zambia Electricity Supply Company (ZESCO) has signed a power supply agreement involving US$2.2 million with Albidon Zambia Limited company.

Speaking at the signing ceremony in Lusaka today, ZESCO Managing Director Rodnie Sisala said ZESCO would construct a 33 KV line from Kafue town substation to Munali Nickel Mine Plant in Southern Province.

Mr Sisala said ZESCO will carry out the project through a contactor to be selected through a competitive bidding process.

He noted that the construction of the Nickel Mine Plant would enhance development in
Southern province and lead to socio-economic benefits for the local people.

Mr Sisala said Albidon and ZESCO will work together with other equipment
manufacturers and contractors in order to complete the project by December this

And Albidon Zambia Limited Managing Director Dale Rodgers said the construction of
the Munali Nickel Plant in Southern province will contribute positively to
sustainable economic development of the country.

Mr Rodgers said about US$65 million will be spend on mine infrastructure development
and the construction of the concentrator.

He stated that upon commissioning of the project, Ore production will be about 900,
000 tonnes per annum adding that annual production will be improved after the
completion of the plant.

Mr Rodgers further said when the project reaches its completion point, annual
production will be improved to about 8, 600 tonnes of Nickel, 1, 400 tonnes of
Copper and 15, 000 ounces of Platinum Group Metal (PGM) in concentrate per annum.

He also said his company has worked out modalities to implement a Resettlement
Action Plan aimed at helping the affected communities as determined by the
Environmental and Social Impact.

Mr Rodgers said the Resettlement Action Plan is based on the international best
practice of the World Bank guidelines.

He said his company has since purchased about 720 hectares of the farmland to
relocate the affected families.


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