Aim- and JSE-listed Kibo Mining has signed a joint venture (JV) agreement with Mozambican energy company Termoeléctrica de Benga to participate in the further assessment and potential development of the Benga independent power project, in Tete, Mozambique.
This includes the right to build and operate a 150 MW to 300 MW coal-fired power station.
Kibo and Termoeléctrica will hold initial participation interests in the unincorporated JV of 65% and 35% respectively.
The Benga JV is another step in advancing Kibo’s strategy to position the company as a leading regional energy player.
Kibo envisages the development of the Benga project in an expedited manner alongside its Mbeya coal-to-power project, in Tanzania, and the recently acquired Mabesekwa coal independent power project, in Botswana.
The Benga project will benefit from Kibo’s experience in the advancement and development of power projects in the East African region and its strategic relationships with international development partners such as Sepco II, and General Electric.
As the project has similarities with the Mbeya and Mabesekwa projects, it is envisaged that considerable benefits could be realised in any potential power station development, including economies of scale in equipment, execution and project finance.