Kibo Mining PLC (LON:KIBO) has awarded a contract for constructing a power line at the Mbeya coal-to-power project in Tanzania to a Chinese major, Sepco III.
The contract comes after four weeks of intensive engagement with Tanzania’s power company, TANESCO, in regard to the proposed power purchase agreement for Mbeya.
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Kibo representatives met with Sepco III in Qindao to discuss the ongoing work on the power purchase agreement and align the PPA with provisions laid out in the engineering, procurement and construction contract.
The two parties decided that sufficient progress has been made with the PPA discussions and that it would be prudent for Kibo to sign Lot 2 of the EPC-contract with Sepco III.
The power line construction contract is the second lot of the EPC contractual work as outlined in August 2017.
Sepco III and Kibo also discussed the possibility of cooperation on Kibo’s Mabesekwa project in Botswana.
"We are delighted to continue working with Sepco III as our designated EPC partner,” said Kibo chief executive Louis Coetzee.
“The signing of this second lot of the EPC is the conclusion of discussions with Sepco III that occurred last week in China, during which several strategic decisions were taken with regard to the further development of the MCPP as well as our future strategic co-operation with Sepco III.”
In early morning trading, Kibo shares were 12.1% higher at 5.1p.
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