Africa-focused energy company Kibo Energy has signed the first of a series of agreements to implement the heads of agreement (HoA) with Shumba Energy to reorganise the arrangements for the Mabesekwa coal independent power project (MCIPP) and its associated coal asset in Botswana.
The signed shareholder agreement concludes the restructuring of the first Botswana subsidiary company, Kibo Energy Botswana (KEB), in which Kibo holds a 35% interest.
KEB holds a 761-million-tonne coal resource and has three large customers.
The remaining agreements are on track to be completed by March 20, 2020. This will result in Kibo holding an 85% interest in an energy project to be called KP2, and an interest of between 35% and 40% in a new 300 MW energy project, KP1, that will exclusively provide a new petrochemicals plant with energy.
The agreement also gives Kibo access to a revenue stream from an estimated coal production of 7.5-million tonnes a year.
On Friday, Kibo CEO Louis Coetzee said the company now has the ability to fully leverage its coal resource at Mabesekwa by providing and fast-tracking three different revenue streams.