Mbeya Coal to Power Project

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Key Facts

Project Type Development of coal mine and associated thermal power plant
Location Songwe Region, Tanzania
Development Stage Integrated Bankable Feasibility Study completed
Kibo’s Interest 97.5%
Resource Kibo has 97.5% interest in a 120 Mt Coal Resource (Rukwa)
Technical Partners SEPCOIII (EPC power plant & power transmission contracts awarded), GE (collaborative agreement), Tractebel & Minxcon
Next Steps – Finalise Power Purchase Agreement and achieve Financial Close
  – Commence construction phase of Project

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The Mbeya Project is located in the Songwe Region of Tanzania and covers approximately 2000 sq. km with Kibo holding a 97.5% interest in the project. An EPC contactor, SEPCOIII, is already in place and the Power Purchase Agreement is currently being negotiated.

The Mbeya Coal Mine has a defined 120.8 Mt NI 43 101 thermal Coal Resource. A Definitive Feasibility Study has been conducted on the mining project which underpins its value with an indicated IRR of 69.2%. The 300 MW mouth-of-mine thermal power station has long term scalability to 1000MW, with a full Power Feasibility Study that has been completed, highlighting an annual power output target of 1840 GWh based on annual average coal consumption of approximately 1.5 Mt. An Integrated Bankable Feasibility Study report for the entire project indicated total potential revenues of US$ 7.5-8.5 billion over an initial 25-year mine life, post tax equity IRR between 21-22%, debt pay-back period of 11-12 years and a construction period of 36 months.

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