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: IE00B97C031
("Kibo" or "the Company")
01 June 2017
Mbeya Coal to Power Project ("MCPP") Receives Formal Reconfirmation to Continue with Accelerated Development of MCPP
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company, is pleased to announce that following extensive interaction with the Ministry of Energy and Minerals ("MEM") over the past month, the Company has received written reconfirmation from the MEM calling for expedited development of the MCPP. The letter follows a period during which the MEM has been the subject of in depth policy reviews and management changes.
Louis Coetzee, CEO of Kibo Mining, said: "We are very pleased with the latest response from the MEM, following recent policy and structural changes at the MEM and TANESCO. The process of negotiating and agreeing a final power purchase agreement should now progress at a considerably faster pace than over preceding months, as this remains the key to completing development of the MCPP.
We are particularly encouraged by the MEM's acknowledgement of the very advanced development status of the MCPP and its key role as a strategic regional power hub able to tackle the unique challenges faced by the Tanzania energy sector at all levels, thereby providing a catalyst for further economic development."
Enquiries
Kibo Mining plc |
+27 (0) 83 2606126 |
Louis Coetzee |
|
River Group |
+27 (0) 83 4408365 |
Andreas Lianos |
|
Beaufort Securities Limited |
+44 (0) 207 382 8300 |
Jon Belliss |
|
RFC Ambrian Limited |
+61 8 9480 2500 |
Oliver Morse |
|
Bell Pottinger |
+44 (0) 203 772 2500 |
Liz Morley |
|
Anna Legge |
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Kibo Mining - Notes to editors
Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. Kibo Mining 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 43-101compliant defined resource, and is developing a 250-350 MW mouth-of-mine thermal power station, the Mbeya Coal to Power Project ("MCPP"), previously called the Rukwa Coal to Power Project ("RCPP"), with an established management team that includes ABSA / Barclays as Financial Advisor. Kibo has completed a Coal Mining Definitive Feasibility Study and a Power Pre- Feasibility Study for the Mbeya project and has recently announced the completion of an Integrated Bankable Feasibility Study report for the project. On 25 August 2016, Kibo signed an Agreement with China based EPC contractor SEPCO III granting it the right to become the sole bidder for the EPC contract to build the power plant component of the MCPP in exchange for SEPCO III refunding 50% of the development costs incurred by Kibo to date on the project. Kibo has already received the first tranche of this funding in the amount of US$1.8 million on the 5th September 2016 and signed an EPC contract with SEPCO III on the 19th December 2016.
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'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. Kibo Mining 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 recognizes the potential to enhance the quality of life and opportunity for Tanzanian citizens through careful development of its projects.
Updates on the Kibo Mining's activities are regularly posted on its website www.kibomining.com.
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
Johannesburg 01 June 2017
Corporate and Designated Adviser River Group
