BizNis Africa
Latest News
Afrimat predicts headline earnings to fall by 20%
Afrimat, a Johannesburg Stock Exchange (JSE)-listed black empowered open-pit...
Bourse Régionale des Valeurs Mobilières roadshow comes to Johannesburg
The Bourse Régionale des Valeurs Mobilières (BRVM), one of...
Distell Group delivers 18.5% revenue growth in African markets
Distell Group revenue grew by 9.3% to ZAR13.4 billion...
Dangote named first African brand to feature on CNN Great Big Story
CNN International Commercial (CNNIC) and Dangote Industries are expanding...
Konrad Reuss speaks at GIBS annual Economic Outlook Conference
President Cyril Ramaphosa’s new administration must show a demonstrable...
Orange and OpenClassrooms provide digital tech training in Africa
Orange and OpenClassrooms (OpenClassrooms.com) have announced the signing of...
Business Insider online publication launches in South Africa
The South African edition of Business Insider, the world’s...
How to apply ethics in business
The world and South Africa are plagued by scandals...
Eskom confirms status of Optimum Coal Mine
Optimum coal mine that supplies Hendrina Power Station in...
Alan Mukoki comments on #2018Budget Speech
The South African Chamber of Commerce and Industry (SACCI)...

Kibo Mining moves closer to concluding MOU and Securing Equity Funding for the Mbeya Coal to Power Project

Kibo, the Tanzania focused mineral exploration and development company, has announced that it has made considerable progress in both securing project financing and progressing the Power Purchase Agreement (PPA) with Tanzania’s sole energy provider, Tanzania Electric Supply Company Ltd (TANESCO) in relation to its advanced Mbeya Coal to Power Project (MCPP).

The MCPP is the Company’s flagship asset, which entails the development of the Mbeya Coal Mine, a 1.5Mtpa operation, based on a defined 120.8Mt coal Mineral Resource, and the Mbeya Power Plant, a 300MW mine-mouth power station.

The MCPP is being advanced to capitalise on the acute energy deficit in Tanzania and the wider East African region and has received strong support from both the Government and international corporates. The Company has received formal Letters of Intent from multiple international EPC/power developers and financing conglomerates keen to provide full project level equity funding for the MCPP.

Accordingly, advanced negotiations with all potential project level investors to determine the optimal partner(s) are currently underway.

Additionally, the Company’s Memorandum of Understanding (MOU), as a precursor to the final PPA with TANESCO, has passed all the relevant legislative stages and is waiting for final confirmation from the Attorney General. The Company anticipates updating shareholders further on progress in this respect in the near future. The MOU, once signed, will provide a fixed framework within which the fundamental commercial and technical components of the PPA will be negotiated and agreed.

“Throughout the years we have enjoyed an excellent working relationship with the Tanzanian Government, and we continue to work successfully under the new mining framework. Having so many global powerhouses expressing a keen interest to partner with us is a fantastic validation of Kibo, the work we’ve done at the MCPP (which recently won the General Electric Innovation Award), and the inherent value of the project. Furthermore, and importantly, their interest emphasises that international companies have a continuing belief in Tanzania as an attractive investment destination. With the final negotiation of the PPA approaching, full Feasibility Studies complete and development finance on its way to being secured, this nationally significant project is reaching a tipping point that I believe will see stakeholders rewarded,” says Louis Coetzee, Kibo Mining Chief Executive Officer.

Leave a Reply

%d bloggers like this: