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Kibo Mining coal-to-power plant feasibility study to be completed by Oct

Kibo Mining coal-to-power plant feasibility study to be completed by Oct

Photo by Bloomberg

19th June 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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Tanzania-focused mineral exploration company Kibo Mining can now “significantly increase” the pace at which feasibility work at its $760-million Mbeya coal-to-power-project (MCPP) can be concluded, after construction and engineering company Chinese Shandong Electric Power Construction Corporation III’s (Sepco III’s) board approved a joint development agreement.

Dual-listed Kibo notes that the agreement will also increase its ability to secure more investors and finance for MCPP.

The board approval paves the way for Sepco III to make an equity investment in the MCPP to a maximum of 15% of total equity in the special-purpose vehicle that will ultimately hold the MCPP asset, while Kibo will hold the remaining 85%.

This investment will be made to ensure the completion of the definitive feasibility study (DFS) in October. Sepco III will also retain specific responsibility to lead the power generation component of the DFS and Kibo will lead the mining component.

The partners will also collaborate on identifying and reviewing construction providers and power plant operators to build and operate the completed MCPP and the appropriate financing structure for the MCPP construction process.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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