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Kibo Energy passes first stage in restructuring of Mabesekwa project in Botswana

Local group Shumba Energy is Kibo’s partner on the projects in Botswana.

Kibo Energy PLC -
KEB is the holding company for the 76mln tonnes coal resource at Mabesekwa.

Kibo Energy PLC (LON:KIBO) has completed the first stage of the restructuring of its Mabesekwa thermal power station project (MCIPP) in Botswana.

Shareholder agreement has been received for a reduction in its holding in Kibo Energy Botswana (KEB) to 35%.

KEB is the holding company for the 761mln tonnes (Mt) coal resource at Mabesekwa.

The remaining agreements are scheduled to be completed by 20 March next year.

These will result in it having stakes in two energy projects: 85% of KP2 and a 35-40% interest in a new 300MW energy project, KP1, that will exclusively provide a new petrochemical plant with energy.

Local group Shumba Energy is Kibo’s partner on the projects in Botswana.

Louis Coetzee, Kibo’s chief executive, said: “Being part of several much larger projects naturally provides many benefits and advantages to the company and its shareholders. 

"We can now fully leverage our coal resource at Mabesekwa by providing and fast-tracking three different revenue streams, which would give Kibo access to a revenue stream from an estimated annual coal production of 7.5Mt coal p/a. compared to producing 1.5Mt p/a for its own consumption at the MCIPP power plant. 

“There is no funding impact in addition to what Kibo currently has for the development of the MCIPP power plant other than we may have to nominally increase our operational capacity to meet the additional operational / management demands for the development of two 300MW power plants.” 

Quick facts: Kibo Energy PLC

Price: 0.445 GBX

LSE:KIBO
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Market Cap: £5.59 m
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