JOHANNESBURG (miningweekly.com) – AltX- and Aim-listed Kibo Mining has received the first payment of $1.8-million from Chinese contractor Sepco III.
This follows the signing, last month, of a new, redefined agreement allowing Sepco III to earn the right to become the sole bidder for the engineering, procurement and construction (EPC) contract to build the power plant component of Kibo’s Mbeya coal-to-power project (MCPP), in Tanzania, in return for refunding 50% of the total development costs on the project incurred by Kibo to date.
The new agreement replaced the previous joint development agreement between the parties and will see Sepco III awarded the EPC contract in December, subject to its bid proposal meeting the EPC specification defined by Kibo and the project’s definitive feasibility study consultants, Tractebel Engineering, along with several other conditions.
"Sepco III's prompt and diligent performance with regard to the first payment due under the agreement demonstrates great enthusiasm for and belief in the MCPP as well as in the company,” says Kibo CEO Louis Coetzee.