Indeed, the government has given dual-listed Kibo Mining renewed confidence in the government’s support for the coal miner’s Mbeya coal-to-power project MCPP), following a meeting between Tanzanian Energy and Minerals Minister Professor Sospeter Muhongo and the Chief Executive Officer of Kibo Mining plc, Louis Coetzee.
The minister said the country is in urgent need for a reliable power supply, as he met with, a mineral exploration and development company working on MCPP on Thursday.
In a meeting held recently, Prof. Muhongo argued that in order to meet the nation’s 2025 goal of establishing a middle class society, the government must work in close cooperation with projects such as the MCPP.
“Kibo should do everything possible to fast track the project. As we should understand, power is at the heart of realizing a stable economy,” the minister noted.
Attendees of the meeting included the National Development Corporation (NDC), State Mining Corporation (STAMICO), Tanzania Electrical Supply Company Ltd (TANESCO) and the ministry’s senior officials.
According to the company statement released on Thursday, Kibo CEO was optimistic that the latest meeting with the government was pivotal in the ongoing development of the Mbeya project.
“As progress on the overall feasibility work for the project continues at pace, it is highly encouraging to receive continued support from the Tanzanian government,” said Coetzee.
He acknowledged that Mbeya project represents a significant power opportunity for the country, saying the joint efforts would be a key driver to achieving an ambitious timescale of generating 300MW in the first phase scheduled for 2019.
Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. The Company is focused on exploration and development of mineral projects in Tanzania, and controls one of Tanzania's largest mineral right portfolios.
Currently, Kibo Mining holds a thermal coal deposit at Rukwa, which has a significant JORC [Australasian Joint Ore Reserves Committee] compliant defined resource and is developing a 250-350MW mouthof- mine thermal power station, the Mbeya Coal to Power Project, previously called Rukwa Coal to Power Project with an established management team that includes Standard Bank as Financial Advisor.
Kibo is undertaking a Coal Mining Definitive Feasibility Study and a Power Pre-Feasibility Study for the Mbeya project with an integrated Coal-Power interim study report to be released in the near term. On 20th April 2015, Kibo signed a Joint Development Agreement for the completion of the Definitive Feasibility Studies and development of the MCPP with China based EPC contractor SEPCO III.
The Company also has extensive gold focused interests including Lake Victoria Goldfields and Morogoro projects. At Lake Victoria, the Company has projects with a 550,000oz JORC compliant gold Mineral Resource at Imweru and a 168,000oz NI 43-101 compliant gold Mineral Resource at the Lubando Project in which the Company holds a 90 percent attributable interest.
Kibo also holds the Haneti Project on which the latest technical report confirms prospectivity for nickel, PGMs, gold and strategic metals including lithium.