Kibo Mining signs supply MoU with Mbeya Cement

JOHANNESBURG (miningweekly.com) – Dual-listed Kibo Mining has signed a strategic memorandum of understanding (MoU) with Lafarge Tanzania subsidiary Mbeya Cement, to develop regional collaboration and to allow for reciprocal supply of materials.

The MoU includes discussions with regional development partners to allow socioeconomic and related development programmes and projects in the Mbeya and Songwe regions; an exclusive coal supply agreement between the Mbeya coal mine and Mbeya Cement; a limestone mining and supply agreement; and a fly ash supply agreement.

Further, the MoU would also focus on a definitive electricity supply agreement, whereby the Mbeya power plant will electrify Mbeya Cement, as well as a definitive cement supply agreement for the construction of the Mbeya coal-to-power plant (MCPP).

CEO Louis Coetzee said the MoU constituted the company’s first step towards implementation of the broader MCPP regional and local development objectives.

“[This is] our first commercial diversification opportunity in as far as coal supply agreements are concerned, other than to the Mbeya power plant. It also marks the first direct electricity supply agreement opportunity outside commitments within the power purchase agreement.”