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")
14 June 2017
Accelerated Development of Mbeya Coal to Power Project ("MCPP") Gains Significant Momentum from Latest Follow-up Discussions with Tanzanian Stakeholders
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company, is pleased to announce that a series of meetings, held with the key Tanzanian stakeholders in the MCPP resulted in significant progress for the further development of the Project.
The recent request for an expedited development of the MCPP (See RNS of 01 June 2017) was followed by active interaction between all stakeholders in the MCPP, which culminated in a series of progress meetings held on the 12th and 13th June 2017. The following key points emanated from said meetings:
1. A clear agenda and associated schedule has been agreed with relevant Government stakeholders to work on those specific development aspects of the MCPP that are dependent on negotiating, agreeing and concluding agreements / approvals with the Tanzanian Government;
2. The Environmental and Social Impact Assessment ("ESIA") submissions for the Mbeya coal mine and Mbeya Power station have been duly processed for certification, pending a final review and verification of recommendations, with the final review in an advanced stage of completion;
3. The special mining licence ("SML") application for the Mbeya coal mine has been processed in its entirety and is now awaiting final approval, pending environmental certification;
4. Engagement with the Ministry of Energy and Minerals ("MEM") on the latest developments in relation to possible further changes in mining policies and the Mining Act has reconfirmed that the Company's operations are not affected by the current debate on mining policies and the Mining Act.
Louis Coetzee, CEO of Kibo Mining, said: "Over the past two weeks we have seen strong and committed engagement from all the Tanzanian stakeholders towards moving the MCPP development process forward and the progress meetings on 12 and 13 June underscored this. From these meetings we have also developed a far better appreciation of the reasons for the perceived slow processing of the SML application and environmental certification. It is evident that the relevant departments concerned with the processing of these applications have taken a very diligent and pro-active approach given the integrated nature of the MCPP. This approach, albeit somewhat slower, not only avoided unnecessary and lengthy delays but also brought about significant cost savings for the Company. Both processes are now very near completion and pending finalization of the last few actions, will be concluded shortly.
We have also had very open and frank discussion with the MEM on the ongoing public discourse in relation to possible further policy and legislative changes concerning the mining industry and we are happy to confirm that our official position in this regard remains unchanged and we believe that the proposed changes and adjustments will in general contribute to a stronger and very robust mining industry in Tanzania going forward."
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 |
Andrew Thomson |
|
Bell Pottinger |
+44 (0) 203 772 2500 |
Liz Morley |
|
Molly Stewart |
|
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 a large mineral rights portfolio in Tanzania. 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
14 June 2017
Corporate and Designated Adviser
River Group
