MCPP definitive feasibility study confirms project’s robustness – Kibo

JOHANNESBURG (miningweekly.com) – The mining definitive feasibility study (MDFS) recently completed at dual-listed Kibo Mining’s Mbeya coal-to-power project (MCPP), in Tanzania, has confirmed the mine as a “robust project in every aspect”, says Kibo CEO Louis Coetzee.

The MDFS comprised the optimisation of the mine design, a detailed mine design based on the results of the restated Mbeya coal resource and the final coal requirement for the Mbeya power station.

“Project fundamentals are significantly better than originally at the end of the concept study in 2014,” Coetzee noted.

The MDFS determined that peak funding of $17-million would be required, 54% less than that set out in the mining prefeasibility study (MPFS).

Kibo pointed out on Friday that it had selected a mining method that eliminated the need to wash the coal produced at Mbeya and that resulted in a 23% decrease in the coal requirement over the life of the power plant, compared with that set out in the MPFS, bringing about significant environmental and cost benefits

The mining method considered in the MDFS made it possible to design a power station that required significantly less coal for the same output of 1 840 GWh/y.

Although this would result in a linear reduction of revenue for the coal mine, Kibo said this was more than offset by cost savings for the power plant, which was most sensitive to fuel costs.

The most important gain from the efficiencies and effectiveness of the mining method was in the notably reduced overall environmental impact of both the mine and the power station.

The mining method selected during MPFS was confirmed as most accurate and cost-effective mining method for the Mbeya coal mine.      

The all-in cost margin was 39%, compared with 49% outlined in the MPFS, owing to greater accuracy in modelling key cost drivers.

With the completion of the MDFS, the two key work streams required for the completion of the MCPP integrated bankable feasibility study (IBFS) were now complete and Kibo would focus its efforts on completing the IBFS.