Kibo Mining PLC (LON:KIBO) shares shot up over 15% as it took another step towards a bankable feasibility study for its Mbeya coal to power project in Tanzania - after the first phase of the environmental and social impact assessment (ESIA) has been completed.
It comes after the firm received notice from the Tanzanian government that the ESIA studies for the Mbeya Coal Mine and Mbeya Power plant have both been officially registered.
Kibo chief executive Louis Coetzee said: "We are very pleased with progress on the ESIA and particularly with the fact that the registration was accepted at the first attempt.
"ESIA registrations frequently fail on the first attempt and can become a significant delay factor.
"Our strong and cooperative relationship with the Tanzanian government coupled with our understanding of the process has enabled us to expedite this stage of the project.
"We have already commenced preparatory work for Phase 2 ahead of submitting the final ESIA to the NEMC. The ESIA is the third key component, alongside the Mining and Power Definitive Feasibility Studies, for the Integrated Bankable Feasibility Study."
Earlier this month, the group said the definitive feasibility study for the power component had confirmed its robust fundamentals.
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.
Shares added 15.63% to stand at 4.625p.