Possible policy changes by the Tanzanian government over electricity power agreements may push back the timetable for Kibo Mining PLC’s (LON:KIBO) Mbeya thermal power station.
Kibo is pulling together all threads of work undertaken at Mbeya into one integrated bankable feasibility study that will be the basis of arranging funding for the project, but said it would have to adjust if there are any policy changes.
Definitive feasibility studies for the coal mine and power station elements of the project have been completed already.
Talks are continuing with the Tanzanian Ministry of Energy and Minerals and state power company TANESCO on terms of a power purchase agreement for Mbeya, Kibo added.
Elsewhere, Kibo said it expects the merger of its Imweru gold project with neighbour Lake Victoria Gold’s Imwelo to go ahead shortly after due diligence, compliance and legal work was completed.
Kibo recently took 100% ownership of Imweru and through the merger hopes to attain critical mass for both gold projects.
Louis Coetzee, Kibo Mining's chief executive, said: "We are very pleased with the continued progress at the company's two main projects. Significant progress has been made on both over the past four months and both projects are continuing to grow in stature and value."