Preliminary Economic & Technical Evaluation of Rukwa Coal to Power Project Confirms Mining Viability

  • Early economic and technical evaluation of the Rukwa Coal Mine confirms robust project fundamentals
  • Rapid progress on Definitive Mining Feasibility Study (“ DMFS”) accelerates process to select and engage suitable consultants for Feasibility Study on Rukwa Power Plant
  • Discussions in progress to finalize Heads of Terms (HOT) for power purchase, coal sale and grid connection agreements
  • Base case supports a 300MW coal fired power plant over an initial 20 year life and beyond
  • Phase 1, Stage 1 of the DMFS slightly ahead of schedule

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 results of a preliminary economic and technical evaluation undertaken as part of the Definitive Mining Feasibility Study (“DMFS”) for the Rukwa Coal Mine. The early assessment of the technical and economic viability of the Rukwa Coal Mine as a suitable fuel source for a 300MW mine-mouth coal fired power station has been
confirmed Work done to date delivered the following summary results:

  • Mine modelling shows that the Rukwa deposit can be mined successfully and economically at a stripping ratio of approximately 4.0 (BCM/t) in an opencast operation, over a LOM of at least 27 years and at an indicative direct mining cost range of $1.00 – $2.00 p/t, and indicative plant cost of $1.00 – $1.50 p/t; and
  • Initial pit optimisation indicates a pit 9,050m along strike, 490m wide, and 100m deep, with the development of Mine Design Criteria currently 60% complete.

Phase 1, Stage 1 of the Rukwa DMFS has thus far primarily focused on:

  • Pit optimisation
  • A conceptual base case for mining the Rukwa coal deposit
  • Mine design criteria
  • Conceptual mining schedule and infrastructure lay–out (inclusive of possible power plant locations)

The indicative Life of Plant for the Rukwa Power Station requires 28.8Mt of coal over 20 years, which amounts to only 48% of the currently mineable resource of 60Mt for the Rukwa Coal Mine. The remaining 52% of the currently mineable resource, combined with the remaining 35km strike length of the Rukwa Coal Deposit not included in the resource, suggests a potential minimum 40 year life of plant for the Rukwa Power Station, with enough fuel left to sustain an additional 600MW capacity for a further 30 to 40 years.

Louis Coetzee, C.E.O. of Kibo Mining, commented: “We are delighted with the latest results of the ongoing work at Rukwa and the rapid progress the Company is making at the moment. The progress made with Phase 1, Stage 1, of the Rukwa DMFS confirms the robust technical and economic fundamentals of the project and its suitability to support a 300MW power station for up to 40 years.”

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