JOHANNESBURG (miningweekly.com) – A week after announcing its new Chinese suitor, Kibo Mining on Wednesday said the first and “strategically most important” condition for the joint development agreement (JDA) for its Tanzanian coal asset had been fulfilled.
Aim- and AltX-listed Kibo Mining on April 20 inked a deal with China-headquartered engineering, procurement and construction (EPC) group Sepco III to jointly develop its Rukwa coal-to-power project (RCPP) in Tanzania.
“The fact that we are able to provide the market with an update on the fulfilment of the most important condition precedent in the JDA so soon after it was signed is strong confirmation that, in Sepco III, Kibo has engaged a highly professional, competent and committed joint venture partner that is as serious as Kibo in pursuing the successful and timely delivery of the RCPP,” Kibo CEO Louis Coetzee said on Wednesday.
A Sepco delegation, comprising commercial, financial and engineering specialists, toured the RCPP mine and power plant site and surrounding areas from April 23 to 27 to undertake an extensive on-site technical workshop and familiarise the team with local conditions and operational and business conditions in the East African country.
The site visit included plenary meetings with the Energy and Minerals Minister and senior officials of the Ministry of Energy and Minerals and related departments.
The team also aimed to plan and finalise the scope of work required to successfully execute and complete Stage 2 of the RCPP definitive feasibility study (DFS), which included an integrated bankable feasibility study.
Sepco, the sole EPC contractor for the project, would be responsible for leading the power generation component of the DFS, while Kibo focused on the mining component.
Following the DFS completion, the parties would identify and review suitable construction providers and power plant operators to build and operate the RCPP.
Sepco and Kibo would also collaborate to identify, review and confirm the appropriate financing structure for the RCPP construction process and relevant financing partners.
“The site visit comprised five very productive days that totally exceeded our expectations in terms of progress made on all relationship levels associated with the JDA,” Coetzee said.
The agreement remained subject to the finalisation of due diligence and any required internal and governmental approvals.