Kibo Moves Closer to Finalising Key Commercial Agreements for Rukwa Coal to Power Project (“RCPP”)
- Agreement reached on terms of reference for development of Power Purchase Agreement (“PPA”) and Grid Connection Agreement (“GCA”);
- Agreement reached on initial heads of terms for Coal Sale Agreement (“CSA”); and
- Detailed financial modelling of Rukwa Coal Mine commences.
Kibo Mining plc (“Kibo” or the “Company”), the mineral exploration and development company focused on gold, nickel, coal and uranium projects in Tanzania, is pleased to announce the latest progress with regard to the work undertaken during Phase 1, Stage 1, of the Rukwa Definitive Mine Feasibility Study (“DMFS”). After completion of a base case mining model, which confirmed that the Rukwa Coal Mine can be mined efficiently and within acceptable cost parameters, the study has entered the final part of Phase 1, Stage 1, still slightly ahead of schedule. Current study work is focussed on scheduling and integrating the conceptual mine, engineering, processing and infrastructure designs into a financial model that will establish the initial capital and operating expenditures for the mine development.
The rapid progress and positive results from the DMFS work completed to date, have also enabled the Company to further engage with the relevant Tanzanian Government Departments and Utilities to agree the terms of reference within which the PPA, GCA and other related ancillary agreements will be developed and finalized. Over the course of the past week (22 – 26 September 2014) these terms of reference were finalized, following a week of very successful and constructive discussions with the relevant Tanzanian Government stakeholders. The heads of terms for the CSA between Rukwa Coal LTD and Rukwa Power LTD were also finalized during this period.
Louis Coetzee, C.E.O. of Kibo Mining, commented: “We are very pleased with the progress and results from the DMFS to date which continues to increase confidence in the viability of the RCPP at all levels. The successful and constructive discussion with Tanzanian Government stakeholders over the past week is a further major step forward in the development of the RCPP, with a particularly positive impact on reaching final agreement with potential development partners.”
Kibo Mining – Notes to editors
Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania. The Company was admitted to AIM in London on 27 April 2010 and the AltX in Johannesburg on 30 May 2011. The Company is developing the Rukwa mouth-of-mine thermal power station and controls one of Tanzania’s largest mineral right portfolios, including the Haneti (nickel, PGE and gold), Morogoro (gold), Lake Victoria (gold), and Pinewood (coal & uranium) projects.
Kibo’s projects are located both in the established and gold prolific Lake Victoria Goldfields, the emerging goldfields of eastern Tanzania and the Mtwara Corridor in southern Tanzania, where the Government has prioritised infrastructural development, attracting significant recent investment in coal and uranium.
Kibo’s objective is to build shareholder value sustainably. This will be achieved primarily through exploration of its own projects and leveraging the Company’s experience in Tanzania to acquire exploration and development assets on competitive terms. The focus is on assets that can be moved swiftly up the value curve whilst benefitting from strategic relationships with industry leaders with special skills and competencies within their chosen fields.
Updates on the Company’s activities are regularly posted on its website www.kibo.energy
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