20 July 2016
Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company is pleased to announce another milestone in the progress of the Mbeya Coal to Power Project (“MCPP”) following the finalization of an Expression of Interest process, focused on developing the Operations and Maintenance (O&M) Agreement for the Mbeya Power Plant.
In order to assess the appetite of the market for operation and maintenance services to the 2x150MW Coal Fired Power Plant as part of the MCPP, a Request for Expression of Interest (REOI) was recently launched. The REOI was sent to a number of pre-selected leading service providers in the O&M third party market, on the basis of their established international track record as third party O&M service providers for coal fired power plants.
The REOI received positive expressions of interest from 90% of the companies approached, with one company declining the opportunity on the basis of capacity constraints. This constitutes a positive reaction from the market and indicates strong confidence in the project.
Louis Coetzee, CEO of Kibo Mining, said: “The further development of the Mbeya Power Station, post – DPFS, involves the parallel development and finalization of the EPC and O&M contractual arrangements. We are delighted to note that the response to our invitation for expressions of interest, from leading international O&M providers, indicated a strong market interest in the MCPP, but also confirmed the robustness of the project based on the willingness of prospective O&M contractors to commit for the entire life of plant i.e. 25 years
As we diligently continue with the last remaining work required to finalize the Integrated Bankable Feasibility for the MCPP, we are in parallel finalizing the definitive agreement with Lake Victoria Gold Limited (“LVG”) to amalgamate our Imweru gold project with LVG’s Imvelo gold project. Further progress updates with regard to both initiatives will follow shortly”
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[ott_teaser btn_text=”Download” btn_icon=”icon-right-big” btn_url=”https://kibo.energy/wp-content/uploads/MCPP-OM-Expression-of-Interest-for-Mbeya-Power-Plant.pdf” btn_target=”_blank”]MCPP: O&M Expression of Interest for Mbeya Power Plant[/ott_teaser]