Name of the Project
Mbeya coal-to-power project (MCPP).

Location
Tanzania.

Client
Kibo Mining.

Project Description
The integrated bankable feasibility study (IBFS) on the MCPP has concluded that the MCPP is financially, technically and operationally a very robust project.

The IBFS comprises an integration of the definitive mining feasibility study (DMFS), the definitive power feasibility study (DPFS), the integrated financial model for the MCPP and all the other relevant technical studies on the MCPP to date.

The MCPP comprises a 122-million-tonne coal resource, of which 85.9% qualifies for the inclusion in any future reserve statement. Of this, 39-million tonnes are included in the pit design and are sufficient to satisfy the required indicative coal requirement of 39-million tonnes for 30 years.

It has been proven that constant coal production over the total life-of-mine can be achieved.

The mining method developed for the Mbeya coal mine has been confirmed as modified terrace mining. Overburden will be removed using a free dig (truck-and-shovel) method, with coal seam and interburden mining using mechanised continuous surface mining. The DPFS has concluded that the power plant, which will be 250 MW to 350 MW, will require coal with a calorific value of 12.85 GJ/t.

Net power that will be generated has been estimated at 1 840 GWh/y.

Average coal and limestone consumption has been estimated at 1 497 432 t/y (as fired) and 110 359 t/y respectively.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The MCPP DMFS estimates an internal rate of return of 69.2% with a payback of 2.4 years.

Value
The MCPP DMFS estimates a peak funding requirement of $17-million.

No new figures have been released in the DPFS.

Kibo Mining remains restricted in its ability to release certain detailed information pertaining to the IBFS, owing to the company’s being engaged in highly confidential discussions with various parties, including regulatory authorities. Such information is commercially sensitive and could result in a breach of Kibo’s confidentiality obligations, subsequently harming the company’s chances to successfully complete negotiations.

The most recent figures, released in the April 2016 DPFS, confirmed the total estimated project cost of the thermal power plant as below the cost estimate stated in the power prefeasibility study (PFS) released in 2014. The power PFS estimated the project’s total cost, depending on the plant option selected, at between $640-million and $760-million.

Duration
Not stated.

Latest Developments
Kibo has submitted its formal tender qualification document to the Tanzania Electricity Supply Company (Tanesco) for the MCPP, in line with government’s new initiative to develop independent power projects.

"Our visionary development approach has allowed us to develop and forge critical strategic partnerships very early on in the process," Kibo Energy CEO Louis Coetzee has said.

"Having done all the definitive feasibility studies, financial modelling, technical development work and environmental- and social-impact assessment certification well in advance, we have been able to submit a tender qualification document of exceptionally high standard and substance in a very short . . . time."

Kibo's subsidiary Mbeya Power was invited to tender for generation of up to 600 MW of coal power following the issue of a request for qualification as the first of a two-stage competitive bidding process on September 18.

The company is now awaiting a definitive date for completion of Stage 1 from State-owned Tanesco and expects this to be completed before the end of 2018.

The request for qualification called for an undertaking to conduct a feasibility study, finance, build, own, operate and transfer coal power projects of a capacity not less than 150 MW and not more than 300 MW in one location.  

Key Contracts and Suppliers
Sepco III (engineering, procurement and construction contractor) and GE (equipment, technology and services).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kibo Mining, tel +353 91 865367, fax +353 91 755066 or email info@kibomining.com.