JOHANNESBURG (miningweekly.com) – The positive outcome of Aim- and AltX-listed Kibo Mining’s integrated bankable feasibility study (IBFS) for the Mbeya coal-to-power project (MCPP), in Tanzania, has placed the company in “a strong position” during the ongoing discussions and negotiations for the final power purchase agreement, as well as with potential projects funders and investors.
The finalised IBFS, which comprises the definitive mining feasibility study, the definitive power feasibility study, the integrated financial model for the MCPP and all other relevant technical studies completed to date, has presented a financially, technically and operationally robust project.
“We are extremely pleased with the positive results from the IBFS. The significant improvement in the various internal rate of return (IRR) figures exceeds management expectations and will, without doubt, attract favourable attention from potential investors,” said Kibo CEO Louis Coetzee.
Kibo is engaged in “highly confidential discussions” with various parties, including regulatory authorities, and it will limit the amount of details from the study it releases publicly until the conclusion of the talks.
The completed report shows the MCPP can be built and commissioned within the previously projected duration of 36 months, with a 21.1% reduction on the total capital requirements originally laid out in the integrated prefeasibility study for the integrated project.
The Tanzania-focused mineral exploration and development company said the latest results also indicated total revenue over an assumed 25-year project life of about $7.5-billion to $8.5-billion.
There are also sufficient additional coal resources available from the Mbeya coal mine to expand the power station to more than double the current design size and plant life, while the technical and environmental risk assessment confirms the construction-ready state of the project, with no environmental “red flags”.
The IBFS further shows an 11% increase on the indicative post-tax equity IRR to between 21% and 22%.