Kibo Mining (LON:KIBO) is moving towards financial close at its thermal coal project at Mbeya in Tanzania after receipt of the definitive feasibility study for the power station.
Louis Coetzee, Kibo’s chief executive, said the study (PDFS) confirmed the robust fundamentals of the project.
A feasibility study has already been completed on the adjacent coal mine that will provide the raw material for the power plant and Coetzee said Kibo was now keen to see by how much the overall economics of the project would improve when both are integrated.
“As a key value driver for Kibo, the PDFS is the strongest statement yet in this regard,” said Coetzee.
“With the PDFS in place, the final development phase of the Integrated Bankable Feasibility Study will commence and the parallel work streams in the MCPP feasibility programme can now be completed,” he added.
Tractebel Engineering carried out the power station study (PDFS) and recommended a two unit, circulating fluidized bed boiler design as the optimal solution to generate 300Mw in the early stages.
This will use 1.5mln tonnes of run-of mine coal from the mine, with capacity to increase electricity output to 600Mw.
Costs have also come in well below the original pre-feasibility estimate, Kibo said.
Coetzee added : “The PDFS and parallel work streams referred to above represent the significant work we have done, and continue to do, in de-risking the project and in improving confidence levels.
“We look forward with confidence to Financial Close."