Kibo Mining expects Mbeya study to be completed in October

Kibo Mining (LON:KIBO) expects both parts of a definitive feasibility study for the Mbeya coal-to-power project in Tanzania to be completed by October. Chinese engineering firm SEPCO III is Kibo’s new partner on the project and will work on the power generation component of the DFS. Kibo will carry out the mining component. The plan is to use the coal for a mine mouth 250MW to 300MW thermal power station. Kibo added that SEPCO III’s board had also now approved the joint development agreement (JDA) with all of the material conditions of the agreement now satisfied. Chief executive Louis Coetzee said this was the most important step to get the deal ratified. “The board approval of the JDA by SEPCO III was always the most substantial condition precedent, without which none of the remaining conditions precedent can be satisfied. “Further and final implementation of the JDA is in essence now an administrative process.” He added aligning with SEPCO III would allow it not only to speed up work on the feasibility study but help it attract investors and finance at a project level. With board approval granted, SEPCO III will now make an equity investment of up to 15% in the special purpose vehicle set up to run the development. Kibo shares rose 6% to 5.05p.