Kibo Mining Plc MCPP Awarded ESIA Certificate from the Government (8046U)
October 27 2017 - 2:00AM
UK Regulatory
TIDMKIBO
RNS Number : 8046U
Kibo Mining Plc
27 October 2017
Kibo Mining Plc (Incorporated in Ireland) (Registration Number:
451931)
(External registration number: 011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
("Kibo" or "the Company")
Dated: 27 October 2017
Kibo Mining Plc ('Kibo' or the 'Company')
MCPP GRANTED ENVIRONMENTAL AND SOCIAL IMPACT
ASSESSMENT (ESIA) CERTIFICATION
Kibo Mining Plc (AIM: KIBO; AltX: KBO), the multi-asset
resource, development and energy company focused on Tanzania, is
pleased to announce that an Environmental and Social Impact
Assessment ("ESIA") Certificate has been awarded to both the Mbeya
Coal Project and to the Mbeya Power Generation Project by the
Tanzanian Government.
The ESIAs are an integral element of the Mbeya Coal to Power
Project ("MCPP") approval process and a further milestone in the
development of this critical energy project in Tanzania. The ESIA
application, submitted to the government in February, is a
1,000-page document setting out the developer's technical,
environmental and social assessment of the two components of the
MCPP. The application was subjected to thorough review by all
relevant authorities and key stakeholders before granting of
approval. The ESIA constitutes a key element of corporate social
responsibility and ultimately, of a company's licence to
operate.
Located in South West Tanzania, the MCPP is developing a coal
mine in tandem with a 300MW 'mine mouth' power station, aiming to
satisfy the acute need for power in the country. The project
benefits from strong local regional and governmental support, who
see it as a national priority playing a key role in the Mtwara
development corridor. The project, which partners with SEPCO III, a
large Chinese construction and engineering company that designs,
builds and operates power plants, was recently awarded General
Electric's Innovative Project of The Year award.
Granting of the ESIA comes as a latest milestone in the MCPP's
development cycle. The Company has already successfully completed a
Power Pre-Feasibility Study, a Mining Pre-Feasibility Study, a
Definitive Power Feasibility Study, a Definitive Mining Feasibility
Study, an Independent Integrated Financial Model and an Integrated
Bankable Feasibility Study.
Kibo Mining Plc CEO, Louis Coetzee, said, "This is terrific news
for Kibo and brings us another step closer to construction. The
endorsement of the MCPP as a consequence of the ESIA certification
cannot be underestimated - this is probably the most important
enabler for the successful and expeditious completion of the
remaining development work on the MCPP.
Furthermore, we have had several very productive meetings with
the newly established Ministry of Energy over the past two weeks
which confirmed our view that the Memorandum of Understanding
("MOU") on the Power Purchase Agreement ("PPA") is progressing well
and that it will be finalized shortly. Once the MOU, and thereafter
the final PPA, is signed we envisage being in production in 36
months, bringing light to homes and businesses in Tanzania and
making a strategic contribution towards enabling the local economy
and delivering cumulative long-term value to our shareholders."
**ENDS**
For further information please visit www.kibomining.com or
contact:
Louis Coetzee +27 (0) 83 Kibo Mining Chief Executive
2606126 Plc Officer
Andreas Lianos +27 (0) 83 River Group Corporate Adviser
4408365 and Designated
Adviser on JSE
Jon Belliss +44 (0) 207 Beaufort Broker
382 8300 Securities
Limited
Andrew Thomson +61 8 9480 RFC Ambrian NOMAD on AIM
2500 Limited
Hugo de Salis +44 (0) 207 St Brides Investor and
/ Priit Piip 236 1177 Partners Media Relations
Ltd Adviser
Notes to editors:
Kibo Mining is a multi-asset resource development and energy
company focused on South West Tanzania, listed on London's AIM
market and the AltX in Johannesburg. The Company's flagship asset
is the Mbeya Coal to Power Project ('MCPP'), which comprises the
development of the Mbeya Coal Mine, a 1.5Mt p/a mining operation
and the Mbeya Power Plant, a 300 MW mine-mouth thermal power
station.
The Mbeya Coal Mine has a defined 120.8 Mt NI 43 101 thermal
coal resource. A Definitive Feasibility Study has been conducted on
the project which underpins its value with an indicated IRR of
69.2%. The 300 MW mouth-of-mine thermal power station has long term
scalability to 1000MW, with a full Power Feasibility Study that has
been published highlighting an annual power output target of 1,8 GW
based on annual average coal consumption of 1.5 Mt. An Integrated
Bankable Feasibility Study report for the entire project indicated
total potential revenues of US$ 7.5-8.5 billion over an initial
25-year mine life, post tax equity IRR between 21-22%, debt
pay-back period of 11-12 years and a construction period of 36
months.
To assist in the execution this critical power project of the
MCPP, Kibo has assembled a team of international team of advisors
and partners including Engineering Procurement and Construction
('EPC') contractors and financial teams that are assisting in the
development of. These include ABSA/Barclays as Financial Advisor,
China based EPC contractor SEPCO III, General Electric, Tractebel
Engineering (Power), Minxcon Consulting (Mining) and legal advisors
Norton Rose Fulbright.
Kibo also holds the Haneti Project on which the latest technical
report confirms prospectivity for nickel, PGMs, gold and strategic
metals including lithium and Rare Earth Elements.
Kibo Mining's projects are located in central Tanzania and in
the Mtwara Corridor in southern Tanzania where the Government has
prioritized infrastructural development attracting significant
recent investment in coal and uranium. The Company has a positive
working relationship with the Tanzanian Government at local,
regional and national levels and works hard to maintain positive
relationships with all communities where company interests are
held. Kibo Mining recognises the potential to enhance the quality
of life and opportunity for Tanzanian citizens through careful
development of its projects.
This announcement contains inside information as stipulated
under the Market Abuse Regulations
(EU) no. 596/2014 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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