Kibo Mining Plc Mbeya Coal to Power Project MOU & PPA Update (5113B)
January 10 2018 - 9:15AM
UK Regulatory
TIDMKIBO
RNS Number : 5113B
Kibo Mining Plc
10 January 2018
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')
Dated: 10 January 2018
Kibo Mining Plc ('Kibo' or the 'Company')
Mbeya Coal to Power Project MOU and PPA Update
Kibo Mining Plc (AIM:KIBO; AltX:KBO), the multi-asset, African
focused energy and resource company, is pleased to announce an
update on the Memorandum Of Understanding ('MOU') and Power
Purchase Agreement ('PPA') for the Mbeya Coal to Power Project
('MCPP') following a productive meeting with the Tanzania Ministry
for Energy ('the Ministry') and Tanzania Electric Supply Company
('TANESCO') on Monday 8 January 2018 during which significant
progress was made towards the expedited completion of the PPA
process.
The meeting demonstrated a clear strategy on the part of the
Ministry and TANESCO for the prompt conclusion of the PPA process,
which will enable financial close of the MCPP, which the Company
believes could then be in production in 36 months. Clear
deliverables were identified, and individual roles and
responsibilities agreed to ensure successful completion of the PPA
by the end of Q1 2018. To ensure that this expedited PPA deadline
can be met, the Ministry proposed specific changes to the MOU to
create a more streamlined process and procedure; and within this
context the Ministry and TANESCO made firm commitments to deliver
the signed MOU by no later than 31 January 2018.
Louis Coetzee, CEO of Kibo Mining, commented: "Kibo is
encouraged by the diligent approach taken by the Ministry and
TANESCO in taking decisive pre-emptive steps to secure an expedited
PPA process; we remain positive that the Ministry will honor its
commitment to meet the deadlines and deliverables agreed upon
during Monday's meeting.
"We should be very clear on the fact that the most important
date at this stage is not the date on which the MOU is signed (the
MOU is only a means to an end, i.e. the PPA), but the date on which
we have a final PPA in hand. At the meeting on Monday, the
commitment of all stakeholders was secured for a firm expedited PPA
date, demonstrating positive progress.
Benefiting from strong regional and local support, the MCPP is
of key national importance, aiming to alleviate the acute power
deficiency in Tanzania. As such, signing the PPA will be a pivotal
moment for Kibo and the development of the MCPP. We would like to
thank our shareholders for their continued support and I look
forward to updating them further in the near future."
**ENDS**
For further information please visit www.kibomining.com or
contact:
Louis Coetzee louisc@kibomining.com Kibo Mining Chief Executive
Plc Officer
Andreas Lianos +27 (0) 83 River Group Corporate Adviser
4408365 and Designated
Adviser on JSE
Jon Belliss +44 (0) 207 Beaufort Securities Broker
382 8300 Limited
Andrew Thomson +61 8 9480 RFC Ambrian NOMAD on AIM
2500 Limited
Isabel de +44 (0) 207 St Brides Investor and
Salis / Priit 236 1177 Partners Ltd Media Relations
Piip Adviser
This announcement contains inside information as stipulated
under the Market Abuse Regulations
(EU) no. 596/2014 ("MAR").
Notes to editors
The Mbeya Coal to Power Project ('MCPP'), 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 completed, 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.
Johannesburg
10 January 2018
Corporate and Designated Adviser
River Group
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDEADFEFLAPEFF
(END) Dow Jones Newswires
January 10, 2018 09:15 ET (14:15 GMT)
Kibo Energy (LSE:KIBO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kibo Energy (LSE:KIBO)
Historical Stock Chart
From Apr 2023 to Apr 2024