Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – The first stage of the definitive mining feasibility study (DMFS) for Tanzania-focused mineral exploration and development company Kibo Mining’s Rukwa Coal to Power project (RCPP) would be completed by the end of November, the company reported on Tuesday.
Kibo noted that it had appointed Minxcon Projects to undertake the DMFS, the first stage of which would cover the conventional prefeasibility elements associated with a coal mine feasibility study, in addition to assessing certain key mining parameters required for the planning of a definitive feasibility study on the proposed Rukwa power plant.
As part of Stage 1 of the DMFS, the Rukwa executive management team would also, over the next four months, settle the heads of terms for a power purchase agreement, a coal sale agreement and a grid connection agreement.
During the past month, the company also reached an in-principle agreement on the definitive terms and conditions for a joint development partnership for the RCPP.
However, Kibo indicated that it had decided to defer signing the joint development agreement until the completion of Stage 1 of the DMFS.
“Upon completion of Stage 1 of the DMFS, which will, [besides other aspects], assess most of the key commercial assumptions in the RCPP, the company expects to conclude the joint development agreement on more favourable commercial terms,” the company said.
“We are pleased with the latest progress on the RCPP. With the official start of the integrated RCPP feasibility study covering both the mine and the power station, the project is now poised to rapidly accelerate.
“Kibo remains focused on finalising a partnership agreement to advance development of the project and the commencement of the DMFS will generate significant forward momentum in the coming months,” Kibo CEO Louis Coetzee commented.