AIM-quoted Kibo owns a thermal coal deposit near Mbeya in southern Tanzania, where it is developing MCPP – a 250-350 megawatt mouth-of-mine thermal power station.
The Tanzanian government wants to add another 600 megawatts of coal power capacity to the country’s electricity grid, and state-owned TANESCO invited submissions from interested companies.
After a brief delay in the tender process, Kibo submitted its application back in December which, had it been successful, would have seen TANESCO buy electricity produced at MCPP.
But Kibo said today that it has received notice from TANESCO stating that it has not qualified to compete in the next stage of the bidding process.
“TANESCO did not supply the company with ANY reasons/explanation for its decision in their notification letter,” said chief executive Louis Coetzee.
“The company is currently seeking very urgent clarification and explanation from TANESCO in this regard, where after the company will consider its next course of action.”
Kibo shares were down 36% to 1.07p in mid-morning trading on Thursday.