Benga Power Plant Project (“BPPP”)

Benga Power Plant Project (“BPPP”)2019-04-09T08:20:50+00:00

Project Description

Key Facts

  • Project Type | Development of thermal coal plant

  • Location | Tete Region, Mozambique

  • Development Stage | Definitive Feasibility Study completed

  • Kibo’s Interest | 65% with option to go to 85%

  • Resource | n/a – coal for power plant to be sourced from local mines

  • Strategic Partner | Termoeléctrica

  • Next Steps |

    1. Complete ESIA (Power)
    2. Complete development of Coal Sale Agreement and Power Purchase Agreements.
    3. Complete Financial Model and Bankable Feasibility Study

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Project Details

Benga, located in the Tete province of Mozambique, is the Company’s first pure energy project and the intention is to develop a coal-fired power station with feedstock provided by local coal producers.

Authorisation by the Mozambique Ministry of Mineral Resources and Energy to proceed with the final feasibility on the Benga Project is already in place, as well as an MoU with Electricidade de Moçambique (“EDM”); the major public company in Mozambique for the generation, transmission and distribution of electricity, to collaborate in the development of a coal-fired power plant.

The JV holds a preliminary five-year lease title over 59 hectares of unimproved land that is expected tobe extended for 50 years once a power plant is under construction.

The Definitive Feasibility Study required by authorities is now complete and as well as evaluating the feasibility of constructing a 150 MW coal-fired power plant, it also includes an environmental impact assessment and a grid integration study.

Discussions with and formal letters of comfort received from

  • Various power supplies off-takers indicating initial demand for up to approximately 150MW
  • Thermal coal producers stating willingness and intent to discuss terms and conditions for the supply of thermal coal as a feedstock for the planned power plant for which advanced negotiations are now in progress
AIM Share Price
(Ticker: KIBO)
1.02p Change +0.04p
at close on 14 Jun 2019

JSE Share Price
(Ticker: KBO)
32.00c Change +0.00c
at close on 12 Jun 2019

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