Aim- and AltX-listed Kibo Mining has reached the final phase of discussions with the Tanzania Electric Supply company (Tanesco) regarding the power purchase agreement (PPA) for its Mbeya coal-to-power project (MCPP).
Kibo on Friday resubmitted a reformatted integrated bankable feasibility study (IBFS), with unchanged content, to Tanesco and the final commercial discussions on the PPA are now expected to be concluded expeditiously.
Kibo previously compiled an extensive IBFS that comprised nine chapters with a variety of technical reports but Tanesco requested that Kibo reformat the IBFS into its own preferred structure and format.
“While the negotiations regarding the PPA for the MCPP have taken longer than we anticipated, it is important to understand that this agreement represents a coal-fired power project of a magnitude never dealt before by Tanesco,” commented Kibo CEO Louis Coetzee.
“We remain committed to advancing this project, in tandem with our other two major energy projects, which are located in Botswana and Mozambique, which like Tanzania, suffer acute energy deficits that hamper economic development,” he added.
“With our own team, as well as strong partnerships, we look forward to building our position as a leading Africa-focussed energy provider”.