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

Location
Tanzania.

Project Owner/s
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 the inclusion in any future reserve statement. Of this, 39-million tonnes are included in the pit design and are 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.

Potential Job Creation
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.

Capital Expenditure
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 pertaining 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, subsequently harming the company’s chances 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.

Planned Start /End Date
Not stated.

Latest Developments
Kibo Energy has decided to convert its application for a special mining licence (SML) for the MCPP to seven mining licences.

The company has said that the decision was taken in the interest of a "better economic outcome for all concerned stakeholders".

The SML application for MCPP had been recommended for approval in September 2018. This had required Cabinet approval.

Following recent further discussions between Kibo and the Tanzania Mining Commission, the parties agreed that, on technical and procedural grounds, it would be more effective to convert the SML application to an application for seven mining licences.

Kibo has assured its shareholders that there is no difference in the status of an SML versus a normal mining licence, with the difference mainly relating to changes in surface area, duration and level of approval.

Whereas an SML allows for a surface area of up to 70 km2 and is effective for the life-of-mine of the operation, mining licences allow for a surface area of up to 10 km2 and are effective for ten years, but can be renewed until the depletion of the deposit.

Further, while an SML requires Cabinet approval, mining licences only require Ministerial approval.

Key Contracts and Suppliers
Sepco 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.