Name and Location
Rukwa coal-to-power project (RCPP), Tanzania.

Client
Kibo Mining.

Project Description
The project comprises two prospecting licences and two prospecting licence applications in south-western Tanzania, just south of Lake Rukwa.

The Rukwa Development Programme (RDP) will be implemented to accelerate the development of the project. Stage 1 of the RDP comprises the completion of a bankable feasibility study on the coal mine and a prefeasibility study on the power plant by December 2014.

Stage 2 will comprise all development and construction activities relevant to the mine and the power plant, with Stage 3 encompassing the commissioning and operation of the Rukwa coal mine and the Rukwa power station.

Value
Not stated.

Duration
Not stated.

Latest Developments
The first stage of the definitive mining feasibility study (DMFS) for Kibo Mining’s RCPP will be completed by the end of November, the company has reported.

Kibo has appointed Minxcon Projects to undertake the DMFS, the first stage of which will 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 will 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 has indicated that it will 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 has said.

Key Contracts and Suppliers
Standard Bank (financial adviser).

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.