Kibo Mining PLC (LON:KIBO) has announced a partnership with Mbeya Cement Company, a LaFarge subsidiary in Tanzania, as the AIM quoted firm moves forward with the Mbeya Coal to Power Project (MCPP).
The junior miner said the deal will establish a strategic regional collaboration and reciprocal supply of materials agreement.
A memorandum of understanding sees the companies working together with a view to definitive deals – including an exclusive agreement for Kibo to supply Mbeya with coal. New arrangements are also anticipated relating to limestone, fly ash, and electricity.
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It is also envisaged that Mbeya Cement will be a supplier to the mine development and contractors.
"We are very pleased with the Mbeya Cement MOU,” said Kibo Mining chief executive Louis Coetzee.
A first step for MCPP development
“This MOU constitutes our very first step towards implementation of the broader MCPP regional and local development objectives; our first commercial diversification opportunity in as far as coal supply agreements are concerned, other than to the Mbeya Power Plant.
“It also marks the first direct electricity supply agreement opportunity outside commitments within the PPA.”
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Coetzee also highlighted that negotiations are underway for other similar partnerships.
LaFarge Tanzania’s Ilse Boshoff added: "We are very excited with the partnership that we have with the Kibo and this gives us mutual benefits in leveraging our key strengths whilst supporting the government and communities at large."