Kibo Mining (LON:KIBO) is making good progress on its coal to power project in Tanzania, with the definitive mining feasibility study on schedule and within budget.
It has also changed the name to Mbeya (from Rukwa), it said to better reflect the regional scale and size of the project.
The company recently teamed up with Chinese group SEPCO to complete definitive mining feasibilities on both aspects of the project and move to the financing stage.
Trade-off studies had identified the potential for significant operating costs as blasting is not required during the mining process.
Third party interest is also high said Louis Coetzee, chief executive, with regular enquiries from potential investors.
“As the studies progress and the commercial and statutory discussions reach increasing levels of maturity, the Mbeya Coal to Power Project continues to demonstrate robust and improving project fundamentals,” he said.
“We are also very pleased with our new joint development partner SEPCO III, with whom an effective and productive working relationship has already been established in a very short space of time."
Last month, Kibo signed a development deal with SEPCO III that will see the Chinese firm will contribute up to US$3mln towards completing a Definitive Feasibility Study by October.
At that point, Kibo’s holding will be transferred into 85% ownership of a special purpose vehicle to develop the project.
Financial close is expected by December, with construction to start in the second quarter of 2016 and first power by 2019.