Kibo Energy PLC’s (LON:KIBO) reorganisation of the Mabesekwa project can be a tipping point for the development in Botswana, believes chief executive Louis Coetzee.
Kibo’s stake in the holding company that owns the project will reduce to between 35-40% from 85%.
Partner Shumba will put up funding for technical and feasibility study on a separate 300Mw coal-fired station to power a new petrochemical plant being built in Botswana.
This Chinese-backed petrochemical plant will supply up to 80% of Botswana’s domestic liquid/gas fuel requirements.
Coal for both power stations will come from the resource at Mabesekwa.
Coetzee added: "This reorganization enables us to more fully leverage and de-risk the MCIPP Resource by pursuing three different potential revenue streams, including a further 250 - 300Mwpower plant in addition to the existing MCIPP 300MW plant currently being advanced. “