Name of the Project
Mbeya coal-to-power project (MCPP).

Location
Tanzania.

Client
Kibo Mining.

Project Description
The integrated bankable feasibility study (IBFS) on the MCPP has concluded that the MCPP is financially, technically and operationally a very robust project.

The IBFS comprises an integration of the definitive mining feasibility study (DMFS), the definitive power feasibility study (DPFS), the integrated financial model for the MCPP and all the other relevant technical studies on the MCPP to date.

The MCPP comprises a 122-million-tonne coal resource, of which 85.9% qualifies for inclusion in any future reserve statement. Of this, 39-million tonnes is included in the pit design and is sufficient to satisfy the required indicative coal requirement of 39-million tonnes for 30 years.

It has been proven that constant coal production over the total life-of-mine can be achieved.

The mining method developed for the Mbeya coal mine has been confirmed as modified terrace mining. Overburden will be removed using a free dig (truck-and-shovel) method, with coal seam and interburden mining using mechanised continuous surface mining. The DPFS has concluded that the power plant, which will be 250 MW to 350 MW, will require coal with a calorific value of 12.85 GJ/t.

Net power that will be generated has been estimated at 1 840 GWh/y.

Average coal and limestone consumption has been estimated at 1 497 432 t/y (as fired) and 110 359 t/y respectively.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The MCPP DMFS estimates an internal rate of return of 69.2% with a payback of 2.4 years.

Value
The MCPP DMFS estimates a peak funding requirement of $17-million.

No new figures have been released in the DPFS.

Kibo Mining remains restricted in its ability to release certain detailed information relating to the IBFS, owing to the company’s being engaged in highly confidential discussions with various parties, including regulatory authorities.

Such  information is commercially sensitive and could result in a breach of Kibo’s confidentiality obligations, subsequentlyharming the company’s ability to successfully complete negotiations.

The most recent figures, released in the April 2016 DPFS, confirmed the total estimated project cost of the thermal power plant as below the cost estimate stated in the power prefeasibility study (PFS) released in 2014. The power PFS estimated the project’s total cost, depending on the plant option selected, at between $640-million and $760-million.

Duration
Not stated.

Latest Developments
Kibo Mining has said recent discussions with key stakeholders of its MCPP have resulted in “significant progress” for the further development of the project.

A recent request for an expedited development of the MCPP was followed by a series of meetings, held on June 12 and 13. At the meetings a clear agenda and associated schedule were agreed upon with relevant government stakeholders to work on specific development aspects of the MCPP, which depend on negotiating, agreeing and concluding agreements and approvals with the Tanzanian government.

Further, the environmental- and social-impact assessment submissions for the coal mine and power station have been duly processed for certification, pending a final review and verification of recommendations, with the final review in an advanced stage of completion.

The special mining licence (SML) application for the Mbeya coal mine has also been processed in its entirety and is now awaiting final approval, pending environmental certification.
Meanwhile, engagement with the Ministry of Energy and Minerals on the latest developments in relation to possible further changes in mining policies and the Mining Act has reconfirmed that the company's operations are not affected by the current debate around the changes.

Key Contracts and Suppliers
Sepeco III (engineering, procurement and construction contractor) and GE (equipment, technology and services).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kibo Mining, tel +353 91 865367, fax +353 91 755066 or email info@kibomining.com.