TIDMKIBO
RNS Number : 1704X
Kibo Mining Plc
04 May 2016
Kibo Mining Plc (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO Share code on the AIM:
KIBO
ISIN:IE00B97C0C31
("Kibo" or "the Company")
04 May 2016
Results for Power Definitive Feasibility Study - Mbeya Coal to
Power Project
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX:
KBO), the Tanzania focussed mineral exploration and development
company is pleased to announce results from the Power Definitive
Feasibility Study ("PDFS") for the Mbeya Coal to Power Project
("MCPP"). This announcement should be read in conjunction with
previous RNS statements dated 18 and 30 December 2014 reporting on
the completed Power Definitive Pre - Feasibility Study, as well as
the most recent announcement dated 29 April 2016.
Key Highlights
The PDFS report was prepared by Tractebel Engineering on behalf
of the Company. Key findings include:
- Primary base case recommended by the Power Pre-Feasibility
Study ("Power-PFS"), i.e. Circulating Fluidized Bed boiler
technology, 300MW configured as 2 x 150MW units, accepted as
optimal selection for final design of the Mbeya Power Station;
- Pre-Feasibility Study annual production target of 1 840 GWh confirmed;
- Annual average coal consumption confirmed at 1 497 432 tonnes
per year, utilising Run - of Mine ("ROM") product from the
co-located mine site and within mine design parameters;
- Total estimated project cost confirmed well below cost estimate stated in Power-PFS;
- Minor technical concerns identified during Power-PFS were all eliminated during the PDFS;
- Based on recently restated Mbeya coal resource, the PDFS
includes provision for near-term expansion of the power station to
at least 600MW;
- Positive PDFS results will further improve the already strong
financial feasibility figures of the MCPP; and
- Receipt of final PDFS-report initiates final development phase
of the MCPP financial model, required for the integrated MCPP
Bankable Feasibility Study
Louis Coetzee, CEO of Kibo Mining plc said "The PDFS is the
cornerstone of the MCPP and the positive results confirm the very
robust fundamentals of the MCPP. The Mining and Power-Pre
Feasibility Studies provided us with early indications that the
MCPP holds the promise of strong technical, operational and
financial fundamentals and the PDFS has confirmed this. We are
particularly keen to see to what extent the PDFS results will
improve the financial fundamentals of the project, once the
integrated financial model has been updated with the PDFS and
Mining Definitive Feasibility Study results.
The completion of this study is also a critical milestone in the
MCPP development process. With the PDFS in place, the final
development phase of the Integrated Bankable Feasibility Study will
commence and the parallel work streams in the MCPP feasibility
programme can now be completed. (See process diagram at: MCPP
Timeline & Description)
The PDFS and parallel work streams referred to above represent
the significant work we have done, and continue to do, in
de-risking the project and in improving confidence levels. As a key
value driver for Kibo, the PDFS is the strongest statement yet in
this regard.
We look forward with confidence to Financial Close."
Background
The MCPP is an integrated coal to power project and to realize
full value from it, Kibo commissioned an established team that
includes Tractebel Engineering ("Tractebel" or "TE") to conduct the
Power Definitive Feasibility Study related to the Power Component
of the Mbeya Coal to Power Project, i.e. a 2 x 150 MW coal-fired
power plant. Kibo also appointed Minxcon Projects ("Minxcon") as
coal mining consultant, Shangoni Management Services ("Shangoni")
as environmental consultant for the Environmental and Social Impact
Assessment, and Standard Bank ("SB") as financial advisor for the
Bankable Feasibility Study, including the financial model. This
team is working on building the complex project case to prove
feasibility of the MCPP.
The PDFS comprises the technical study of a 2 x 150 MW
coal-fired power plant ("Plant" or "Power Plant") as well as a grid
impact study conducted by Tractebel. The primary fuel resource for
the project is coal from the adjacent Mbeya Coal Mine. (RNS 11
April 2016)
The Power Plant is designed for a capacity of 300 MW gross
consisting of two identical units of 150 MW gross. Each unit will
consist of a boiler with associated combustion system and flue gas
treatment, a steam turbine generator, a water cooled condenser with
a wet mechanical draft cooling tower, and a step-up
transformer.
The boiler will be designed utilizing circulating fluidized bed
(CFB) technology, with in- furnace limestone injection for the
sulphur dioxide (SO2) emission control (i.e. desulphurization of
flue gas). A further advantage of this arrangement is that the
favorable combustion characteristics of a CFB boiler will achieve
an optimally low emission of nitrogen oxides (NOx), ensuring
compliance with World Bank Standards. Dust particles will be
captured in a back-end fabric filter.
The Plant will also comprise common facilities including a
common flue gas stack, a raw water treatment plant, a waste water
treatment plant, a coal storage and handling system, an ash buffer
storage and handling system, a limestone storage and handling
system, a liquid fuel storage (start-up fuel), an auxiliary
oil-fired boiler (if required), a black start diesel generator, a
220kV electrical substation, a compressed air plant and a fire
fighting system.
A dry ash disposal area will be installed in the vicinity of the
Power Plant site, with an impervious layer to prevent leachate from
entering the ground water, and a settlement pond will be required
to treat rainwater runoff before release. Ash disposal into the
mined out voids in the mine pit is also considered jointly with the
mining feasibility study as a practical alternative.
Non-process buildings including an administration building,
workshop, warehouse and canteen will be built at site. A living
compound for operations and maintenance personnel, integrated with
mine personnel, will be built in the direct vicinity of the mine
and power plant.
The generated power will be evacuated by the TANESCO grid
through a dedicated 220kV overhead line of about 90 km which is to
be erected and connected to a new Mbeya substation to be built by
TANESCO.
The construction phase will last about 36-37 months from Notice
to Proceed to provisional acceptance of the first unit
commissioned. Different options for the Plant Operation and
Maintenance ("O&M") have been envisaged. Performing the O&M
through an O&M Agreement to a third party is the preferred
solution.
The Plant is expected to operate in base load. However, part
load operation and operational flexibility is required to comply
with the grid requirements. The Plant is designed to operate
continuously under all site ambient conditions, burning all coals
from the design range supplied by the Mbeya Coal Mine.
As availability and reliability of the Plant and individual
equipment is of major importance, plant redundancy will be such
that a failure of any single component (excluding main equipment of
the power block) will not cause the unit to trip. In this regard, a
black start diesel generator is foreseen to allow for the start-up
of the Plant independently of power supply from the grid.
The primary water supply to the Power Plant will be from the
coal mine dewatering arrangement. This water will consist of
groundwater and rainwater pumped out of the mining area to
treatment ponds, from where it will be supplied to the Power
Station. The secondary water supply will be from the abundant
groundwater available in the area. Boreholes and adequate pumping
arrangements will be established for this purpose.
The Power Plant, as well as the "Balance of Plant", inclusive of
the plant operation will be designed to be compliant with World
Bank and Tanzanian environmental, health and safety standards.
The annual input and output quantities are given in Table 3-4
below.
Parameter Units 2x150 MW Plant
----------------------- ----------------- ------------------------
Net power generated GWh/y 1 839
----------------------- ----------------- ------------------------
Coal consumption t/y 1 497 432
----------------------- ----------------- ------------------------
Limestone consumption t/y 110 359
----------------------- ----------------- ------------------------
Water consumption t/y 4 273 207
----------------------- ----------------- ------------------------
Solid by-products
(bottom and fly
ash) t/y 679 306
----------------------- ----------------- ------------------------
Important Notes for Readers:
The information contained within this report is taken from the
PDFS produced by Tractebel in respect of the MCPP. Recognising the
level of commercial sensitivity and for the protection of all
stakeholders' interests we have limited the technical and financial
information that we publish in this report and in the wider public
domain at this time.
Readers must note that operational and financial data pertaining
to any complex development project of this nature is project
specific. Kibo has undertaken the MCPP PDFS to properly and
professionally understand the technical and financial merits of the
project. The findings outlined can only be used in an assessment
and analysis of the MCPP to which this work relates and not
necessarily as a generic benchmark standard.
(MORE TO FOLLOW) Dow Jones Newswires
May 04, 2016 02:01 ET (06:01 GMT)
Contacts
+27 (0) 83 Kibo Mining Chief Executive
Louis Coetzee 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
------------------ ------------ --------------- -------------------
Oliver Morse +61 8 9480 RFC Ambrian Nominated Adviser
2500 Limited on AIM
------------------ ------------ --------------- -------------------
Daniel Thöle +44 (0) 203 Bell Pottinger Investor and Media
/ Anna Legge 772 2500 Relations
------------------ ------------ --------------- -------------------
Kibo Mining - Notes to editors
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. Tanzania provides a
secure and stable operating environment for the mineral resource
industry and Kibo Mining therein.
Kibo Mining holds a thermal coal deposit at Mbeya, which has a
significant NI 43-101 compliant defined resource, and is developing
a 250-350 MW mouth-of-mine thermal power station, the Mbeya Coal to
Power Project ("MCPP"), previously called Mbeya Coal to Power
Project ("MCPP"), 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 Bankable Feasibility
Study report for the MCPP to be released in the near term. On
20(th) 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 550,000 oz. JORC compliant gold
Mineral Resource at Imweru Project and a 168,000 oz. NI 43-101
compliant gold Mineral Resource at the Lubando Project in which the
Company holds a 90% attributable interest. The Company is currently
undertaking a Definitive Feasibility Study on its Imweru
Project.
Kibo also holds the Haneti Project on which the latest technical
report confirms prospectivity for nickel, PGMs, gold and strategic
metals including lithium.
Kibo Mining further holds the Pinewood (coal & uranium)
project where the company has entered into a 50/50 Exploration
Joint Venture with Metal Tiger plc.
Finally, the Company also holds the Morogoro (gold) project
where the company has also entered into a 50/50 Exploration Joint
Venture with Metal Tiger plc.
The Company's projects are located in the established and gold
prolific Lake Victoria Goldfields, the emerging goldfields of
eastern Tanzania and 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. The Company recognizes the potential to enhance
the quality of life and opportunity for Tanzanian citizens through
careful development of its projects.
Updates on the Company's activities are regularly posted on its
website www.kibomining.com
Johannesburg
04 May 2016
Corporate and Designated Adviser
River Group
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGUGDUBDGBGLS
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May 04, 2016 02:01 ET (06:01 GMT)
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