Kibo Mining PLC (LON:KIBO) has received written reconfirmation from Tanzania’s Ministry of Mines that it wants the Mbeya coal to power station project to advance as fast as possible.
Tanzania’s mines ministry has been in turmoil recently over a dispute about how much gold in concentrate is being exported from the country.
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The minister in charge, Sospeter Muhongo, has been fired and the Ministry’s (MEM) Audit Agency disbanded due to claims the amount leaving the country had been grossly understated.
Louis Coetzee, Kibo’s chief executive, said he was very pleased to have the reconfirmation in light of the changes at the Ministry and also at state power company TANESCO.
“The process of negotiating and agreeing a final power purchase agreement should now progress at a considerably faster pace than over preceding months, as this remains the key to completing development of the MCPP.
“We are particularly encouraged by the MEM's acknowledgement of the very advanced development status of the MCPP and its key role as a strategic regional power hub able to tackle the unique challenges faced by the Tanzania energy sector at all levels.”