Kibo reports accelerated progress at Mbeya

JOHANNESBURG (miningweekly.com) – The Mbeya coal-to-power project (MCPP) is seeing accelerated momentum, with a fresh round of successful follow-up meetings with government departments and other Tanzanian stakeholders concluded, AltX- and Aim-listed Kibo Mining said on Wednesday.

The Tanzania-focused mineral exploration and development company, along with the Tanzania Electric Supply Company, received official instruction by the Tanzanian Ministry of Energy and Minerals to prepare a final memorandum of understanding that will govern the further development of the MCPP and the power purchase agreement (PPA).

“We are very pleased with progress on the MCPP over the past six weeks and particularly pleased with the significant increase in momentum over the past three weeks. Development of the MCPP is currently advancing on all levels and we are optimistic that this trend will persist going forward,” said Kibo Mining CEO Louis Coetzee in an update to shareholders.

The PPA is expected to be submitted to the Attorney General for review within the next ten days.

Further high-level workshops and meetings will take place over the course of next month as part of the ongoing priority development schedule for the MCPP.

The completion of the Mbeya coal special mining right application and the environmental certification of the Mbeya coal mine and Mbeya power plant, remains on course.

“On the back of the latest progress made in the further development of the MCPP, several formal expressions of interest were received from internationally recognised infrastructure investors, expressing interest in making equity investments in the MCPP,” Coetzee said.

The MCPP entails the development of a coal mine, based on an existing coal resource of about 121-million tons, and a 250 MW to 300 MW mine mouth thermal power station.