Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Kibo makes further progress with Tanzanian government over Mbeya power purchase agreement

Kibo held further talks with the Tanzanian government on Monday and said it is on track to have the MoU signed by the end of this month, ahead of completing the PPA by the end of March
mbeya coal to power project
Once Kibo has the PPA in hand it believes it can get the project into production within three years

Africa-focused energy and resource company Kibo Mining PLC (LON:KIBO) held further talks with the Tanzanian Ministry for Energy and Tanzania Electric Supply Company earlier this week.

During those meetings, Kibo said it made “significant progress” towards the expedited completion of the power purchase agreement process for the Mbeya Coal to Power project.

The PPA – which is essentially the Tanzanian government and TANESCO agreeing to buy the power in advance – is needed for Kibo to complete the financing for the project.

Once that is in hand, the AIM-listed firm believes it can get the MCPP into production within 36 months.

Kibo told investors that both the MoE and TANESCO demonstrated a “clear strategy” to conclude the PPA process promptly and reassured investors that the PPA is on track to be completed during the current quarter.

In order to meet that timeframe, the Tanzanian government has asked for a couple of changes to the Memorandum of Understanding – the initial outlying agreement that comes before the PPA.

Kibo said the changes should streamline the whole process and both the MoE and TANESCO have made “firm commitments” to sign the MoU by the end of January.

“Kibo is encouraged by the diligent approach taken by the Ministry and TANESCO in taking decisive pre-emptive steps to secure an expedited PPA process; we remain positive that the Ministry will honor its commitment to meet the deadlines and deliverables agreed upon during Monday's meeting,” said chief executive Louis Coetzee.

“We should be very clear on the fact that the most important date at this stage is not the date on which the MOU is signed (the MOU is only a means to an end, i.e. the PPA), but the date on which we have a final PPA in hand.

“At the meeting on Monday, the commitment of all stakeholders was secured for a firm expedited PPA date, demonstrating positive progress.”

Kibo shares were down 6.3% to 5.6p in late afternoon trade on Wednesday.

View full KIBO profile View Profile

Kibo Energy PLC Timeline

Related Articles

September 06 2018
Kogi's plans to become an integrated steel producer will allow it to tap into a ready market
gold bars
August 02 2018
Arc Minerals has significant upside at kalaba in Zambia
Gold bars and gold mining operation
March 28 2018
The AUD gold price is trading near its all-time highs at around A$1,750 per ounce.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use