(Alliance News) - Kibo Energy PLC on Thursday announced progress on the power purchase agreement with Baobab Resources Ltd for the supply of around 200 megawatts from the Benga power station to the Baobab tete steel project in Mozambique.
The multi-asset energy company which aims to tackle power deficits in Sub-Saharan Africa said it has submitted a power purchase agreement draft which is currently being reviewed.
Kibo said discussions are also being held around the provision of auxiliary power for the first phase of a 250,000 tonnes per annum steel rolling mill of the Baobab tete steel project.
Kibo Chief Executive Louis Coetzee said: "We are satisfied with developments of the Baobab project and we are looking forward to continue our co-operation with Baobab. The phased development approach being considered by Baobab for the Baobab steel project, will allow Baobab to enter production early, thereby expediting the Revuboe Industrial Freezone and ultimately benefitting the Mozambiquan national economic development strategy and also expediting timelines for delivery of first power to Baobab."
Kibo Energy shares were up 17% at ZAR0.07 each in Johannesburg on Monday, and down 5.0% at 0.19 each in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Kibo Energy (KIBO)