Last checked at 21 Mar 2018 08:00
Kibo Mining Plc (Incorporated in Ireland) (Registration Number: 451931)
(External registration number: 2011/007371/10) Share code on the JSE Limited: KBO
Share code on the AIM: KIBO ISIN: IE00B97C0C31
('Kibo' or 'the Company')
Dated: 21 March 2018
Kibo Mining Plc ('Kibo' or the 'Company')
Tanzanian Government Prioritises Private Sector
Kibo Mining plc (AIM: KIBO; AltX: KBO), the multi-asset Tanzania focused energy and resource company, notes recent comment in the press regarding the Tanzanian President's pledge to support the private sector at the 11th Tanzania National Business Council ('TNBC') meeting at the State House.
At the TNBC meeting, President Magufuli highlighted his wish for the Government to work on a new, closer and mutually beneficial engagement with the private sector saying: "Business people are our most important stakeholders; they provide the Government with much-needed revenue."
Furthermore, the intermittent power supply in the country was a key issue mentioned at the TNBC meeting. President Magufuli assured the audience that the Government was working on its concerns and that an agreement with a new contractor was expected to be signed soon.
Louis Cotzee, CEO of Kibo Mining said: "It is heartening to see the winds of change blowing from Tanzania. This is a very clear and powerful signal that the country is open to business and keen to create an environment where companies can thrive. We are looking forward to making further strides with our nationally important flagship Mbeya Coal to Power Project, that aims to alleviate the acute power deficiency in the country and hope to sign the Power Purchase Agreement shortly."
**ENDS**
For further information please visit www.kibomining.com or contact:
Louis Coetzee | louisc@kibomining.com | Kibo Mining Plc | Chief Executive Officer |
Andreas Lianos | +27 (0) 83 4408365 | River Group | Corporate Adviser and Designated Adviser on JSE |
Ben Tadd / Tom Curran | +44 (0) 203 7000 093 | SVS Securities Limited | Broker |
Andrew Thomson | +61 8 9480 2500 | RFC Ambrian Limited | NOMAD on AIM |
Isabel de Salis / Priit Piip | +44 (0) 20 7236 1177 | St Brides Partners Ltd | Investor and Media Relations Adviser |
Notes to editors
Kibo is a multi-asset resource development and energy company with a long-term goal of becoming a leading power producer in Sub-Saharan Africa. The Company aims to tackle the acute power deficit which is severely hindering economic development in the region.
Kibo's flagship asset is the Mbeya Coal to Power Project ('MCPP') in Tanzania which comprises of the development of the Mbeya Coal Mine, a 1.5Mt p/a mining operation and the Mbeya Power Plant, a 300 MW mine-mouth thermal power station.
The Mbeya Coal Mine has a defined 120.8 Mt NI 43 101 thermal coal resource. A Definitive Feasibility Study has been conducted on the project which underpinned its value and confirmed an initial rate of return of 69.2%. The 300 MW mouth-of-mine thermal power station has long term scalability with the potential to become a 1000MW plant. The completed full Power Feasibility Study highlighted an annual power output target of 1.8 GW based on annual average coal consumption of 1.5 Mt. An Integrated Bankable Feasibility Study report for the entire project indicated total potential revenues of US$ 7.5-8.5 billion over an initial 25-year mine life, post tax equity IRR between 21-22%, debt pay-back period of 11-12 years and a construction period of 36 months.
At the end of 2017 Kibo agreed to acquire 85% of a nearly identical power project in Botswana from Shumba Energy in an all share transaction. Mabesekwa Coal Independent Power Project ('MCIPP') consists of 300Mt subset of the current in-situ 777 Mt coal resource. Notable synergies between the projects provide considerable benefits, including economies of scale in equipment, execution, project finance and strong existing MCPP strategic partnerships. MCIPP already has water and land use permits and environmental certification in place and Pre-Feasibility Study on the coal mine and a Scoping Study on the power plant have been completed. The power plant will have a maximum capacity of 600 MW (4x150MW) and based on a coal delivery rate of 3.2 Mtpa and a Life of Mine of over 30 years.
To assist in the execution of this critical power project of the MCPP, Kibo has assembled an international team of advisors and partners including Engineering Procurement and Construction ('EPC') contractors and financial teams that are assisting in the advancement and development of the MCPP. These include ABSA/Barclays as Financial Advisor, China based EPC contractor SEPCO III, General Electric, Tractebel Engineering (Power), Minxcon Consulting (Mining) and legal advisors Norton Rose Fulbright.