Kibo Mining, the Tanzania focused mineral exploration and development Company, is pleased to announce that it has signed a strategic Memorandum of Understanding with Mbeya Cement Company, to develop a strategic regional collaboration and reciprocal supply of materials agreement.
Over the past months the Company and Mbeya Cement have identified various areas in which they believe they can collaborate towards the socio-economic benefit of the Mbeya and Songwe regions as well as for their own commercial objectives. After identifying the various areas of possible collaboration, Kibo and Mbeya Cement have committed their respective companies towards achieving these benefits by agreeing and signing a strategic Memorandum of Understanding (MOU).
The MOU will guide and govern a process whereby the parties will use their reasonable commercial endeavours to procure definitive agreements that will ensure fairness both in respect of product pricing and specific quantities, and will also make provision for market conditions to procure a fair commercial relationship in which all parties share in the risks and benefits of prevailing market conditions.
“We are very pleased with the Mbeya Cement MOU. This MOU constitutes our very first step towards implementation of the broader MCPP regional and local development objectives; our first commercial diversification opportunity in as far as coal supply agreements are concerned, other than to the Mbeya Power Plant. It also marks the first direct electricity supply agreement opportunity outside commitments within the PPA,” says Louis Coetzee, Kibo Mining Chief Executive Officer.
Kibo is currently involved in various other similar negotiations towards establishing the MCPP’s commercial role as a critically important regional socio-economic development catalyst.
As stated in previous announcements, the MCPP fulfils a dual role as strategic national energy supplier on the one hand and as a pivotal socio-economic development agent on the other.
We are very excited to have Mbeya Cement as a partner and we are looking forward to working together to transform the Songwe and Mbeya regions into a significant economic development hub in East Africa.
“We are very excited with the partnership that we have with the Kibo and this gives us mutual benefits in leveraging our key strengths whilst supporting the government and communities at large,” says Ilse Boshoff, Lafarge Tanzania Chief Executive Officer.