TanzaniaKibo Mining, the Tanzania focused mineral exploration and development company, has released an update on its Coal to Power project, and announced the formal renaming of the project, to better reflect the regional scale and size of the project.


  • DMFS remains on schedule and well within budget;
  • Trade-off studies identify potential for significant operating expenditure (opex) reduction increasing project value and profitability potential;
  • Blasting not required during the mining process with total over burden and inter-burden
  • minable through free-digging, materially decreasing opex;
  • Surface Continuous Miner proves to be feasible mining method;
  • Rukwa Coal to Power Project (RCPP) renamed to Mbeya Coal to Power Project (MCPP), with immediate effect;

Kibo Mining CEO Louis Coetzee comments: “We are extremely pleased with the progress of the current phase of the DMFS (Prefeasibility Phase). As the studies progress and the commercial and statutory discussions reach increasing levels of maturity, the Mbeya Coal to Power project (Previously called the Rukwa Coal to Power project) continues to demonstrate robust and improving project fundamentals.

“Progress made to date continues to draw attention from third parties, particularly those expressing an interest in investing directly at project level. In this regard the company remains in active discussions with various investors and now sees regular additional enquiries from new supplementary third party investment sources.

“We are also very pleased with our new joint development partner SEPCO III, with whom an effective and productive working relationship has already been established in a very short space of time.”

DMFS – Summary of Latest Progress

The DMFS has now reached the mid- point and trade-off studies indicate that all overburden material can be mined making use of free-digging and trucking. This will significantly reduce the coal mine opex. It will also bring about a significantly safer operating environment since drilling and blasting will no longer be required, eliminating the necessity for explosives on the mine site.

Even more exciting is the fact that the use of surface continuous mining equipment, identified as a possible mining method during the concept study, proved feasible at this stage. This will allow precise accuracy in extraction of the various coal seams and, more importantly, will eliminate the need for washing coal, making it possible to deliver the raw mined product directly into the power plant. Apart from the significant economic savings this will bring about, all of the above will also make significant contributions towards a much safer and environmentally friendly mine operation.

Preliminary geotechnical evaluations also delivered positive results and did not identify any areas of concern related to the coal mine development or power plant construction. An extensive geotechnical investigation, including a geotechnical drill campaign at the RCPP site area among others, is scheduled to commence within the next 10 – 18 days. Data and findings from the geotechnical study will inform critical mine design criteria that will be required for work planned during Stage 2 of the DMFS.

All other routine activities associated with the ongoing feasibility work are taking place in parallel and remain on schedule as planned. Some of these activities include the establishment of a basic automated weather station as well as a water testing hole. The latter will be drilled to support the mining environmental assessment. Similarly, discussions and interaction with the Tanzanian government are ongoing as part of the process to finalise the various critical agreements between the MCPP and relevant government agencies.

Name change rationale

The Company has also decided to officially change the name Rukwa Coal to Power project to Mbeya Coal to Power project (MCPP). The name change is aimed at avoiding further confusion of the company’s coal to power project with similarly named projects, owned by unrelated companies that have no relationship or association to Kibo or any of the company’s projects in Tanzania.

The project is at the same time making major strides forward towards plant construction and generation and in the process unfolding the full extent of the MCPP’s regional impact. The new name will therefore also better reflect the regional impact and presence of the project.

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