Kibo Mining Signs "Seminal" Accord With Tanzania Government For Mbeya
LONDON (Alliance News) - Kibo Mining PLC said Wednesday it has signed a memorandum of understanding for the power purchase agreement at its Mbeya coal to power project in Tanzania.
Kibo's share were up 12% on Wednesday at a price of 5.88 pence each following the announcement.
The memorandum was signed with the state-owned Tanzania Electric Supply Co, known as Tanesco, and is a precursor to the finalising of the agreement with TANESCO and Tanzania's Ministry of Energy.
Kibo said the agreement will enable it to move the Mbeya project into the final development phase, which would involve construction and commissioning.
It hopes to have funding for this in place during the second half of 2018, following which Kibo hopes to have Mbeya producing first electricity to grid within 36 months.
Kibo is planning to build a 300 megawatt mine-mouth power station in south-western Tanzania, which it said will help alleviate the country's energy deficiency.
Chief Executive Louis Coetzee said: "This is a seminal moment for Kibo as a signed MOU signals the official engagement by Tanesco and the ministry in the formal implementation of the Mbeya coal-to-power project and moves us to just one step away from finalizing the power purchase agreement.
"This welcome news follows a month of hard work by Kibo, who have made sure that all relevant stakeholders, especially our development partners, will be ready and in place to immediately commence with this final critical phase of the power purchase agreement process. We will continue to work closely with all the relevant parties and remain positive that the Ministry will honour its commitment to deliver a signed power purchase agreement by the end of the first quarter."
By George Collard; [email protected]
Copyright 2018 Alliance News Limited. All Rights Reserved.
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