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Kibo Mining lands environmental and social impact green light in Tanzania

Louis Coetzee described the award as “terrific news” and highlighted that it brings Kibo another step closer to project construction.

coal stockpile
The coal to power project is advancing towards approval

Kibo Mining PLC (LON:KIBO) has landed an environmental and social impact assessment (ESIA) certificate for the Mbeya coal project and the Mbeya power generation project in Tanzania.

The ESIAs represent integral elements of the approval process for the company’s proposed Mbeya coal to power project (MCPP), the company said in a statement on Friday, and the award is seen as a ‘further milestone’ in the critical energy project.

READ: Kibo Mining issues £1.55mln in convertible loan notes, including to a new high net worth investor

Kibo noted that at Mbeya it has already successfully completed a power pre-feasibility study, a mining pre-feasibility study, a definitive power feasibility study, a definitive mining feasibility study, an independent integrated financial model and an integrated bankable feasibility study.  

Louis Coetzee described the award as “terrific news” and highlighted that it brings Kibo another step closer to project construction.

“The endorsement of the MCPP as a consequence of the ESIA certification cannot be underestimated - this is probably the most important enabler for the successful and expeditious completion of the remaining development work on the MCPP,” Coetzee said.

“Furthermore, we have had several very productive meetings with the newly established ministry of energy over the past two weeks which confirmed our view that the memorandum of understanding on the power purchase agreement is progressing well and that it will be finalized shortly.”

READ: Kibo Mining says power agreement for Mbeya has been submitted

He added: “Once the MoU, and thereafter the final PPA, is signed we envisage being in production in 36 months, bringing light to homes and businesses in Tanzania and making a strategic contribution towards enabling the local economy and delivering cumulative long-term value to our shareholders."

In a note to clients, analysts at Beaufort Securities commented: “Today's announcement is more positive news for Kibo as granting of the ESIA is a significant milestone for the development of the Mbeya coal to power project.

“We look forward to the finalisation of the MoU which will be the precursor to the all-important PPA. In the meantime, we maintain a Speculative Buy on the stock”

In late afternoon trading, KIibo shares were up 16.7%, or 0.75p at 5.25p.

 -- Adds analyst comment, share price --

Quick facts: Kibo Energy PLC

Price: 0.221 GBX

LSE:KIBO
Market: LSE
Market Cap: £4.91 m
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