Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – London- and Johannesburg-listed Kibo Mining on Monday said the “rapid and positive” progress of the definitive mine feasibility study (DMFS) for its Rukwa coal-to-power project (RCPP) had enabled several agreements to be inked with the relevant Tanzanian government departments and utilities.
The DMFS work completed to date enabled Kibo to reach an agreement on the terms of reference for the development of the power purchase and grid connection agreements, with the initial heads of terms for the coal sale agreement finalised between Rukwa Coal and Rukwa Power.
A detailed financial modelling of the Rukwa coal mine had also started.
“Over the course of the past week, these terms of reference were finalised, following a week of very successful and constructive discussions with the relevant Tanzanian government stakeholders,” Kibo Mining CEO Louis Coetzee said in a statement on Monday.
“[These agreements are] a further major step forward in the development of the RCPP, with a particularly positive impact on reaching final agreements with potential development partners,” he added.
The Rukwa DMFS study had entered the final part of Phase 1 of Stage 1 slightly ahead of schedule.
Current study work was focused on scheduling and integrating the conceptual mine, engineering, processing and infrastructure designs into a financial model that would establish the initial capital and operating expenditures for the mine development.
The RCPP entails the development of a 300 MW mouth-of-mine thermal coal plant at the Rukwa coal deposit.