JOHANNESBURG (miningweekly.com) – Dual-listed mineral explorer Kibo Mining continues to finalise a memorandum of understanding (MoU) with Tanzania Electric Supply Company (Tanesco) regarding a power purchase agreement (PPA) for the Mbeya coal-to-power project (MCPP), in Tanzania, informing the market on Monday that it continues to engage in “very constructive dialogue” with the State-owned energy group and the Tanzanian Ministry of Energy and Minerals.
Kibo noted that the parties had identified an agreed set of principles to guide and direct the development of a PPA for the MCPP which sought to recognise, balance and protect the interests of all MCPP stakeholders.
This set of principles would be incorporated in an official MoU with Tanesco to serve as the reference framework within which the parties would jointly develop and implement an appropriate PPA for the MCPP, the company said in a statement.
“The MCPP continues to make significant progress, with this latest breakthrough being one of the most important milestones in the development of the
MCPP to date. Finalising critical commercial arrangements on the MCPP, to ensure optimal value creation and realisation on the company's flagship asset, is crucial at this stage of the project's development.
“This announcement also shows that the company is diligently and successfully attending to the MCPP's key commercial development objectives,” commented Kibo CEO Louis Coetzee.
He added that the negotiations remained supported by the ongoing technical feasibility work that was rapidly advancing in parallel.
Kibo continued to progress the final phases of the MCPP definitive feasibility study and expected to deliver a bankable feasibility study for the integrated MCPP on schedule.