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Kibo Energy PLC, the multi-asset, Africa focused, energy company, is pleased to announce that it has been granted seven Mining Rights for its Mbeya Coal to Power Project (‘MCPP’) in Tanzania, further to the announcement dated 9 July 2019.
The Company continues to advance the MCPP in Tanzania, one of its four international power projects, which the board believes represents an exciting opportunity. Accordingly, the application process for seven Mining Licences covering the original Special Mining Licence (‘SML’) application area has been completed by the Mining Commission, and an Offer Letter for each application has been issued to Kibo’s 100% owned subsidiary, Mbeya Coal Ltd, each of which it has subsequently accepted. This constitutes approval and grant of the Mining License applications, subject to Kibo remitting all required statutory payments related to the issuance of a Mining Right.
The MCPP has a 120.8 Mt NI 43 101 thermal Coal Resource covered by the seven Mining Licences now granted. A Definitive Feasibility Study confirmed the economic viability of the mining project with an indicated IRR of 69.2%. Grant of the Mining Rights will enable commercial mining activity to commence.
Louis Coetzee, CEO of Kibo, commented, “The successful delivery of the MCPP is gaining momentum. Receiving these seven Mining Rights to enable commercial mining activity is another key milestone, which we anticipate will provide a better economic outcome for all concerned stakeholders and further clarity regarding the project’s ongoing development, especially when the continued progress that has been made recently in securing offtake for the Mbeya Power Plant is considered as well. As I mentioned in an earlier announcement, we are delighted with the excellent cooperation and support by the Mining Commission of Tanzania and look forward to providing further updates in due course.”