Kibo Mining has finalised the JV with Mozambique energy company Termoeléctrica de Benga regarding the development of the Benga independent power project.
This agreement includes the right to construct and operate a 150-300 MW coal fired power station and is synergistic with Kibo Mining's other two projects, the Mbeya Coal to power project (MCPP) in Tanzania and the Mabesekwa Coal independent power project (MCIPP) in Botswana.
With the JV finalised, a full feasibility study on Benga independent power project (BIPP) has commenced, designed to confirm its commercial and operational viability; it will include a pre-feasibility study, definitive feasibility study and an environmental impact assessment in addition to economic assessments, which will include a comprehensive financial model.
Furthermore, formal discussions regarding a power purchase agreement between Kibo Mining and prospective off-takers of the BIPP have been initiated.
Notably, discussions with, and formal letters of comfort already received from; various power supply off-takers have indicated an initial demand for up to approximately 150 MW; thermal coal producers have stated a willingness and intent to discuss terms and conditions for the supply of thermal coal as a feedstock for the planned power plant.
“With all the JV conditions met in a very short time frame, we are going full steam ahead with the development of Benga with the commencement of a comprehensive feasibility study," comments CEO of Kibo Mining, Louis Coetzee.
"Utilising our experience gained from the development of the MCPP as well as the strategic positioning of the BIPP, we are able to immediately commence the PPA discussions.
"With letters of comfort for 150 MW from multiple power supply off-takers in place and thermal coal producers stating terms and conditions to supply the plant with necessary coal, we are in a strong position to expedite the development of the BIPP.
“EDM has a public mandate to connect 400,000 new clients to the national grid every year as currently only 30% of Mozambique has access to electricity.
"Demand has been growing consistently by 6-8% per year and even more rapidly in the north at around 20% due to the many mining operations underway.
"The BIPP, in conjunction with the Mbeya coal to power project and Mabesekwa independent coal to power project, presents a unique opportunity for Kibo to achieve its objective of becoming a leading energy player in the region.
"With much achieved in a relatively quick timeframe, we are very pleased with the progress made so far," he continues.