Having submitted a reformatted integrated BFS, Kibo Mining has reached the final phase of discussions regarding the Power Purchase Agreement for the Mbeya Coal to Power Project with TANESCO.
Kibo Mining previously compiled an extensive IBFS, which has been commended by TANESCO, that consisted of nine chapters with a variety of technical reports, including:
- the financial model and report; *the definitive feasibility study (power)
- the environmental and social impact assessment report
- the competent persons report on the MCPP mineral resource
- an extensive geo-technical report
- a report on aquifer testing and numerical flow modelling, geo-hydrological investigation, hydrological study, topographical analyses and digitised topographical mapping
However, TANESCO requested that Kibo Mining reformat the IBFS into its own preferred structure and format, which added considerable time to the PPA process.
Notably, the content remained unchanged.
The reformatted IBFS has been resubmitted to TANESCO and the final commercial
discussions on the PPA are expected to conclude expeditiously following submission of the reformatted IBFS.
“Whilst the negotiations regarding the PPA for the MCPP have taken longer than we anticipated, it is important to understand that this agreement represents a coal fired power project of a magnitude never dealt before by TANESCO. We are hopeful that having completed the reformatted IBFS we can conclude negotiations on the MCPP PPA soon,” says Kibo Mining CEO, Louis Coetzee.
“We remain committed to advancing this project, in tandem with our other two major energy projects located in Botswana and Mozambique, which like Tanzania, suffer acute energy deficits that hamper economic development. With our own team, as well as strong partnerships, we look forward to building our position as a leading African-focused energy provider.”