Kibo Mining Limited (LON:KIBO) says a memorandum of understanding (MoU) for the Mbeya project in Tanzania has been submitted by state electricity group Tanesco to the Attorney General's office.
The MoU will provide a fixed framework for the commercial and technical components of a power purchase agreement (PPA), which has yet to be finalised.
The PPA is one of the last major requirements for Mbeya, Kibo’s flagship asset.
Additionally, no further queries on the ESIA (environment) and the Mining Licence application were received and the certification/approval process is progressing smoothly.
Kibo wants to develop the Mbeya coal mine as a 1.5mln tonne operation based on a defined 120.8 mln tonne resource with a 300Mw mine-mouth power station.
Elsewhere, gold subsidiary Katoro has sent drill samples to laboratories in Tanzania and South Africa for assay, geotechnical and metallurgical testing under the new Tanzanian mining rules.
'While this is a bit more cumbersome than previous, it is pleasing that no major delays are being incurred,' Kibo said.
Losses for the half year to June were £2.26mln (£2.237mln). None of Kibo’s projects are yet at the revenue generating stage.