Kibo Mining coal-to-power plant feasibility study to be completed by Oct
JOHANNESBURG (miningweekly.com) – Tanzania-focused mineral exploration company Kibo Mining can now “significantly increase” the pace at which feasibility work at its $760-million Mbeya coal-to-power-project (MCPP) can be concluded, after construction and engineering company Chinese Shandong Electric Power Construction Corporation III’s (Sepco III’s) board approved a joint development agreement.
Dual-listed Kibo noted that the agreement would also increase its ability to secure more investors and finance for MCPP.
The board approval paved the way for Sepco III to make an equity investment in the MCPP, to a maximum of 15% of total equity in the special purpose vehicle that would ultimately hold the MCPP asset, while Kibo would hold the remaining 85%.
This investment would be made towards the completion of the definitive feasibility study (DFS) in October. Sepco III would also retain specific responsibility to lead the power generation component of the DFS and Kibo would lead the mining component.
The partners would also collaborate on identifying and reviewing construction providers and power plant operators to build and operate the completed MCPP and the appropriate financing structure for the MCPP construction process.
In addition, the DFS work would include negotiation and agreement of the terms of a power purchase agreement, implementation agreement and environmental-impact assessment.
MCPP would deliver 109-million tons of thermal coal over its mine life, with the coal to be fed into a 250 MW to 300 MW mine mouth thermal power station.
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