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
“Rapid and positive” progress on the definitive mine feasibility study (DMFS) for its RCPP has enabled several agreements to be inked with the relevant Tanzanian government departments and utilities.

The DMFS work completed to date has enabled Kibo to reach an agreement on the terms of reference for the development of the power purchase and grid connection agreements, with the initial heads of terms for the coal sale agreement finalised between Rukwa Coal and Rukwa Power.

A detailed financial modelling of the Rukwa coal mine has also started.

The Rukwa DMFS study has entered the final part of Phase 1 of Stage 1 slightly ahead of schedule.
A conceptual mine plan for the project has confirmed that the mine could produce 120 000 t/mof run-of-mine coal.

The mine plan has also determined a stripping ratio of four bank cubic metres a ton.

Kibo has stated that the confirmation of these critical factors demonstrates that the project can be mined efficiently and within previously reported cost parameters.

This will be achieved by mining the pit from two boxcuts, allowing advances on four benches (faces) and four directions along strike simultaneously.

This arrangement will provide flexibility in the mine plan and setup and allow for mine waste to be deposited in the pit, significantly reducing hauling cost and eventual rehabilitation cost.

In September, the company reported that preliminary economic and technical evaluations on the project had confirmed the Rukwa mine as a suitable fuel source for a 300 MW mine-mouth coal-fired power station.

At the time, it said the indicative life-of-plant for the Rukwa power station required 28.8-million tons of coal over 20 years, which amounted to only 48% of the current 60-million tons of mineable resource at the Rukwa mine.

The remaining 52% of the currently mineable resource, combined with the remaining 35 km strike length of the Rukwa coal deposit not included in the resource, suggested a potential minimum 40-year life-of-plant for the Rukwa power station, with enough fuel left to sustain an additional 600 MW capacity for a further 30 to 40 years.

Current study work is focused on scheduling and integrating the conceptual mine, engineering, processing and infrastructure designs into a financial model that will establish the initial capital and operating expenditures for the mine development.

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.