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

Location
Tanzania.

Project Owner/s
Kibo Mining.

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

The integrated BFS comprises an integration of the definitive mining feasibility study, the definitive power feasibility study, 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 definitive power feasibility study 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 definitive mining feasibility study estimates an internal rate of return of 69.2%, with a payback of 2.4 years.

Capital Expenditure
The MCPP definitive mining feasibility study estimates a peak funding requirement of $17-million.

No new figures have been released in the definitive power feasibility study.

Kibo Mining remains restricted in its ability to release certain detailed information pertaining to the integrated BFS, 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 definitive power feasibility study, 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 been informed by its Tanzanian subsidiary, Mbeya Power, that its water rights for the MCPP, obtained in August 2018, have been successfully renewed ahead of schedule.

This ensures that the MCPP environmental-impact assessment certification remains valid and maintains the right to use large quantities of water, a strategic commodity for the MCPP, specifically by the power station.

Meanwhile, the Tanzanian Ministry of Minerals had accepted the company’s required statutory payments related to seven mining rights for the MCPP.

Kibo CEO Louis Coetzee has said that the acceptance of the payments, which were made well within the required payment timeframe, provided further confirmation that the MCPP was rapidly gaining momentum.

Earlier this year, Kibo received formal notice from the Tanzania Electric Supply Company to develop the MCPP for the export market, enabling the company to engage with African power pools regarding offtake agreements.

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.