Kibo... The Positive Spin8 Feb 2020 08:59
Nice that we are at last the recipients of positive sentiment.
Allow me to welcome newbies with my version of the KIBO story. As the title to this post vouches its not everyones version.
KIBO started out as a mining company pure and simple and was Tanzania based. Soon after its inception it (in common with many mining companies of the time at a similar stage) began to leak value very damagingly to a lot of the initial investors (including one Mr Lurker) and the bitterness of that legacy still persists.
However time passed the share price found its value and LC began to diversify into coal to power relative to the Mbeya Coal Project.
It seemed to many of us who were around at the time that there was a real sense of purpose as partners were brought on board studies were completed supportive noises eminated from the Tanzanian government it became obvious that our project could not be better placed having regard to the proposed multi country power line etc etc.
Then the Tanzanian government changed. At first many of us welcomed Magafuli who's nickname was The Bulldozer and had a reputation for getting things done but in hindsight thats when the wind began to be taken out of the KIBO sails.
The mining laws were completely overhauled. We thought that when that was concluded all would be well. After intense negotiation a MOU was agreed with the new government (a unique achievement) and a further intense period this time to agree a PPA with the government ensued. The government even went as far as to agree a deadline by which the PPA would be finalised. That came and went. More delay.
Then one of LC'S curve balls. We bought Bots. Cue bewilderment and headscratching. Why diversify before Tanzi was over the line?
Tanzi now decided that our Mbeya project would now have to be subject to a tender along with others. Surely we thought thats only a blip in the road. We were the best and most advanced package. Magafulli had fallen in love with a huge (many would say white elephant) project to provide hydro electric power at Steiglers Dam and in contrast to all three of the special mining licenses (we were one) that had been approved by the Mining Ministry but still hadn't received the necessary cabinet sanction, papers were signed to allow that project to proceed. Already problems are becoming apparent with that.
Anyway we lodged a comprehensive tender got informal feedback that it was brilliant and then for no publically disclosed reason were told we didn't in fact qualify.
Cue the start of a disastrous drop in the share price. Tanzi was our flagship. Now it had been destroyed we thought.
However LC hadn't just been hanging around. The MOZ project was bought and advanced. The pure mining plays were spun off into KAT (and by the way many would say that the current excitement about tailings pales into insignificance with whats to come with KAT's other projects). KIBO was well and truly branded as an energy company.part 2 to follow
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