First Financial Indicators for Rukwa Coal to Power Project (“RCPP”)

  • Initial financial modelling confirms robust project economics;
  • Continuous surface mining technology is expected to result in reduced direct mining costs.

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 positive first key financial indicators for the Rukwa Coal Mine, produced from the feasibility work done thus far. Initial financial modelling based on conventional mining methods indicates:

  • Capital expenditure well below initial estimates;
  • Attractive rates of investment return over life of mine;
  • Short indicative capital payback period;
  • Direct mining cost estimate of between USD1.60/t – USD1.90/t

A preliminary investigation into continuous surface mining as a possible replacement to traditional coal seam mining through blasting and drilling, on which all modelling has been done thus far, is expected to bring about significant reductions in direct mining costs. Continuous surface mining is also expected to provide the following additional advantages:

  • Fast, precision mining of the coal seam; and
  • Reduction in crushing requirement.

Louis Coetzee, C.E.O. of Kibo Mining, commented: “The initial robust economics of the Rukwa Coal Mine are better than expected and bode well for the remaining RCPP feasibility work. The results obtained from feasibility work done so far will now be subjected to further rigorous interrogation during the ensuing, more advanced, stages of the feasibility study. Incorporating specific requirements / specifications from the Power Feasibility Study will further refine the economic assessment of the Rukwa Coal Mine.”

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