Kibo Mining PLC (AIM:KIBO) has finalised the joint venture agreement with Mozambique energy company Termoeléctrica de Benga SA regarding the development of the Benga Independent Power Project (BIPP).
The AIM-listed,multi-asset, Africa-focused energy and resource company said the agreement includes the right to construct and operate a 150-300 megawatt (MW) coal-fired power station and is synergistic with the company's other two projects, the Mbeya Coal to Power Project in Tanzania and the Mabesekwa Coal Independent Power Project in Botswana.
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The firm added that, with the JV finalised, a full feasibility study on Benga has commenced, designed to confirm its commercial and operational viability.
Furthermore, the group said formal discussions regarding a Power Purchase Agreement between Kibo and prospective off-takers of the BIPP have been initiated.
It added that, notably, discussions with, and formal letters of comfort already received from; various power supply off-takers have indicated an initial demand for up to approximately 150MW of power.
The firm also said that thermal coal producers have stated a willingness and intent to discuss terms and conditions for the supply of thermal coal as a feedstock for the planned power plant.
Louis Coetzee, Kibo Mining’s CEO commented: "With all the JV conditions met in a very short time frame, we are going full steam ahead with the development of Benga with the commencement of a comprehensive feasibility study.”
He added: “The BIPP, in conjunction with the Mbeya Coal to Power Project and Mabesekwa Independent Coal to Power Project, presents a unique opportunity for Kibo to achieve its objective of becoming a leading energy player in the region.
“With much achieved in a relatively quick timeframe, we are very pleased with the progress made so far."