Mbeya Coal to Power Project Update

RNS Number : 1256Q

Kibo Mining Plc

25 February 2016

 

Mbeya Coal to Power Project: Kibo attends key meeting with Tanzania Minister of Energy and Minerals

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company continues to attract strong Tanzanian government support for the Mbeya Coal To Power Project (MCPP).

This follows a successful meeting between Kibo CEO Louis Coetzee and Tanzania's Minister of Energy and Minerals ("MEM"), Hon. Professor Sospeter Muhongo, and his team.

The meeting took place last week, on request of the Minister and updated the MEM on progress with the MCPP. Attendees of the meeting included the National Development Corporation (NDC), State Mining Corporation (STAMICO), Tanzania Electrical Supply Company Ltd (TANESCO) and senior staff from the MEM.

Louis Coetzee, CEO of Kibo Mining, said: "My latest meeting with the Hon. Professor Sospeter Muhongo and his team was pivotal in the ongoing development of the Mbeya project. As progress on the overall feasibility work for the project continues at pace, it is highly encouraging to receive continued support from the Tanzanian government.

During the meeting the Hon. Professor Sospeter Muhongo reiterated Tanzania's urgent requirement for a reliable supply of base load power. Emphasizing that power is at the heart of realizing a stable economy, Professor Sospeter Muhongo argued that in order to meet the nation's 2025 goal of establishing a middle class society, the government must work in close cooperation with projects such as the MCPP and requested Kibo to do everything possible to fast track the project.

The Mbeya project represents a significant power opportunity for Tanzania, and continued support from the government is key to achieving our ambitious timescale with the first phase of production, 300MW, scheduled for 2019. As we have done throughout our feasibility work thus far, we look forward to working closely and cooperatively with the MEM and all stakeholders to ensure the Mbeya project does not experience unnecessary delays."

Contacts

Louis Coetzee	[phone]	Kibo Mining plc	Chief Executive Officer
Andreas Lianos	[phone]	River Group	Corporate Adviser and Designated Adviser on JSE
Jon Belliss	[phone]	Beaufort Securities Limited	Broker
Oliver Morse	[phone]	RFC Ambrian Limited	Nominated Adviser on AIM
Daniel Thöle / Anna Legge	[phone]	Bell Pottinger	Investor and Media Relations

Kibo Mining - Notes to editors

Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. The Company is focused on exploration and development of mineral projects in Tanzania, and controls one of Tanzania's largest mineral right portfolios. Tanzania provides a secure and stable operating environment for the mineral resource industry and Kibo Mining therein.

Kibo Mining holds a thermal coal deposit at Rukwa, which has a significant JORC compliant defined resource (See Table 1 below), and is developing a 250-350MW mouth-of-mine thermal power station, the Mbeya Coal to Power Project ("MCPP"), previously called Rukwa Coal to Power Project ("RCPP"), with an established management team that includes Standard Bank as Financial Advisor.  Kibo is undertaking a Coal Mining Definitive Feasibility Study and a Power Pre-Feasibility Study for the Mbeya project with an integrated Coal-Power interim study report to be released in the near term. On 20^th April 2015, Kibo signed a Joint Development Agreement for the completion of the Definitive Feasibility Studies and development of the MCPP with China based EPC contractor SEPCO III.

The Company also has extensive gold focused interests including Lake Victoria Goldfields and Morogoro projects. At Lake Victoria, the Company has projects with a 550,000oz JORC compliant gold Mineral Resource at Imweru Project and a 168,000oz NI 43-101 compliant gold Mineral Resource at the Lubando Project in which the Company holds a 90% attributable interest. The Company is currently undertaking a Definitive Feasibility Study on its Imweru Project.

Kibo also holds the Haneti Project on which the latest technical report confirms prospectivity for nickel, PGMs, gold and strategic metals including lithium. 

Kibo Mining further holds the Pinewood (coal & uranium) project where the company has entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

Finally the Company also holds the Morogoro (gold) project where the company has also entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

The Company's projects are located in the established and gold prolific Lake Victoria Goldfields, the emerging goldfields of eastern Tanzania and the Mtwara Corridor in southern Tanzania where the Government has prioritised infrastructural development attracting significant recent investment in coal and uranium. The Company has a positive working relationship with the Tanzanian government at local, regional and national levels and works hard to maintain positive relationships with all communities where company interests are held.  The Company recognises the potential to enhance the quality of life and opportunity for Tanzanian citizens through careful development of its projects.

Updates on the Company's activities are regularly posted on its website www.kibomining.com  

Johannesburg

25 February 2016

Corporate and Designated Adviser

River Group

 

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