SEPCO III approves Tanzanian project: Kibo Mining

Kibo Mining, the Tanzania-focused mineral exploration and development company, said on Tuesday the joint development agreement it signed recently with SEPCO III had now been approved by the SEPCO III board.

In terms of this agreement, the two companies agree to jointly develop Mbeya Coal to Power Project.

Through Mbeya Coal to Power Project, Kibo Mining seeks to mine thermal coal, utilising this coal to generate 250MW to 300MW power.

This project is in the development stage, with definitive feasibility work ongoing.

Already, the project has the support of the Tanzanian government and is a key component of the Tanzanian National Strategic Energy Plan, which seeks to resolve the shortage of power in the country.

Louis Coetzee, CEO of Kibo Mining, said this approval marked a crucial milestone in the implementation process of the agreement, noting he was delighted to confirm to the group's shareholders that the material conditions precedent to the agreement were now satisfied.

The board approval of the agreement by SEPCO III was always the most substantial condition precedent, without which none of the remaining conditions precedent could be satisfied, Coetzee said.

The new status of the joint development agreement with SEPCO III would not only allow Kibo Mining to significantly increase the pace at which the feasibility work could be concluded but also further increase the ability to secure further investors and finance into Mbeya Coal to Power Project, at a project level, he said.

Mbeya Coal to Power Project was previously called Rukwa Coal to Power Project.

Source: INET BFA