Kibo Energy granted seven mining licences for coal-to-power project
By Josh White
Date: Thursday 15 Aug 2019
(Sharecast News) - Africa-focussed energy company Kibo Energy has been granted seven mining rights for its Mbeya Coal-to-Power Project (MCPP) in Tanzania, it confirmed on Thursday.
The AIM-traded firm said it was continuing to advance the MCPP - one of its four international power projects - which it said represented an "exciting" opportunity.
As a result, the application process for seven mining licences covering the original special mining licence application area had been completed by the Mining Commission, and an offer letter for each application was issued to Kibo's wholly-owned subsidiary, Mbeya Coal, each of which it had subsequently accepted.
The company said that constituted the approval and granting of the mining license applications, subject to Kibo remitting all required statutory payments related to the issuance of the rights.
The MCPP has a 120.8 million tonne thermal coal resource covered by the seven mining licences now granted.
A definitive feasibility study confirmed the economic viability of the mining project, with an indicated internal rate of return of 69.2%.
Grant of the mining rights would enable commercial mining activity to commence, the board confirmed.
"The successful delivery of the MCPP is gaining momentum," said Kibo Energy chief executive officer Louis Coetzee.
"Receiving these seven mining rights to enable commercial mining activity is another key milestone, which we anticipate will provide a better economic outcome for all concerned stakeholders and further clarity regarding the project's ongoing development, especially when the continued progress that has been made recently in securing offtake for the Mbeya Power Plant is considered as well.
"As I mentioned in an earlier announcement, we are delighted with the excellent cooperation and support by the Mining Commission of Tanzania and look forward to providing further updates in due course."
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