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 inclusion in any future reserve statement. Of this, 39-million tonnes is included in the pit design and is 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 from 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.

Jobs to be Created
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 relating to the IBFS, owing to the company’s being engaged in highly confidential discussions with various parties, including regulatory authorities.

The release of such information could result in a breach of Kibo’s confidentiality obligations and is commercially sensitive. Doing so could harm the company’s ability 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 Mining has signed a strategic memorandum of understanding (MoU) with Lafarge Tanzania subsidiary Mbeya Cement to develop regional collaboration and to allow for reciprocal supply of materials.

The MoU includes discussions with regional development partners to allow socioeconomic and related development programmes and projects in the Mbeya and Songwe regions; an exclusive coal supply agreement between the Mbeya coal mine and Mbeya Cement; a limestone mining and supply agreement; and a fly ash supply agreement.

The MoU will also focus on a definitive electricity supply agreement, whereby the Mbeya power plant will electrify Mbeya Cement, as well as a definitive cement supply agreement for the construction of the MCPP.

Kibo CEO Louis Coetzee has said the MoU constitutes the company’s first step towards implementation of the broader MCPP regional and local development objectives.

Key Contracts and Suppliers
Sepeco 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.