Kibo Mining PLC (LON:KIBO) has ratified its collaboration agreement with US giant General Electric for the Mbeya coal/power project in Tanzania.
A Memorandum of Understanding was agreed on 16 September 2016 and this agreement is now binding.
GE will supply equipment, technology and services to the project's power plant, in addition to assisting and co-operating with Kibo to implement the project.
Louis Coetzee, Kibo’s chief executive, said that since the MOU was signed the two companies had already collaborated closely at Mbeya.
“By working closely with GE, we will benefit from their experience and reputation and this will expedite the remaining work required to reach successful financial close for MCPP (Mbeya)."
Mbeya is expected to be constructed in a number of stages. The first would involve two 150MW coal-fired units to be combined to produce 1,840 gigawatt hours of electricity per year.
Eventually power production capacity will double to at least 600Mw.