JOHANNESBURG (miningweekly.com) – Dual-listed Kibo Mining is adopting a diversified production strategy for the Mbeya coal mine, in Tanzania, which could potentially result in production starting earlier than planned.
This followed a “careful study” of the Mbeya coal-to-power project (MCPP) integrated bankable feasibility study (IBFS), which showed the move to be feasible and as having the potential to significantly enhance the economics of the Mbeya coal mine.
“We specifically investigated parallel commercial opportunities in addition to producing coal for the Mbeya power plant only, the ultimate results from the IBFS, as well as latest policy changes in Tanzania,” said Kibo CEO Louis Coetzee.
Kibo is working on the development of a 250 MW to 350 MW mine mouth thermal power station alongside the mine, and the IBFS, integrating the results of all studies to date on the project, has enabled Kibo to negotiate successfully towards agreeing a power purchase agreement with the Tanzanian government.
The Tanzania-focused mineral exploration and development group said the Mbeya power plant would be the mine’s primary client, with the domestic coal market as a secondary client.
“The company has already engaged with the domestic market in this regard with very positive response thus far,” said Coetzee.
Meanwhile, Kibo issued 277 768 new ordinary shares of €0.015, issued at a price of 4.75p apiece, to service providers, including for recent geological and investor relations services, in settlement of invoices for a total amount of £13 194.