Dual listed Tanzania-focused junior Kibo Mining is currently finalising a Memorandum of Understanding (MOU) with Tanzania Electric Supply Company for a Power Purchase Agreement (PPA) for its Mbeya Coal to Power Project (MCPP).
Over the past twelve months Kibo has been engaged in a very constructive dialogue with TANESCO and the Tanzanian Ministry of Energy and Minerals. During this process the parties identified an agreed set of principles to guide and direct the development of a PPA for the MCPP.
These principles seek to recognise, balance and protect the interests of all MCPP stakeholders in a manner that ensures the best interests of the MCPP are served at all times.
This set of principles will be incorporated in an official MOU with TANESCO to serve as the reference framework within which the parties will jointly develop and implement an appropriate PPA.
“The MCPP continues to make significant progress, with this latest breakthrough being one of the most important milestones in the development of the MCPP to date,” says Louis Coetzee, CEO of Kibo Mining.
“Finalising critical commercial arrangements on the MCPP, to ensure optimal value creation and realisation on the company’s flagship asset is crucial at this stage of the project’s development. This announcement also shows that the company is diligently and successfully attending to the MCPP’s key commercial development objectives. These efforts are in turn strongly supported by the on-going technical feasibility work that is rapidly advancing in parallel.”
Kibo is continuing to progress the final phases of the MCPP Definitive Feasibility Study with confidence and significant momentum. We have every reason to believe that we will be able to conclude the MOU in the very near future and that we will complete all remaining feasibility work on time and in doing so also deliver the Bankable Feasibility Study for the integrated MCPP on schedule.”