Kibo completes MDFS for Mbeya project

Kibo Mining has completed the mining definitive feasibility study (MDFS) for the Mbeya coal-to-power project (MCPP). The MDFS findings suggest that the mine is a “robust project with strong financial and commercial indicators,” the company said in a press release.

The MDFS sees IRR improve to 69.2% compared to 53.9% from the prefeasibility study and defines a payback period of 2.4 years, a 7% improvement on the 2.6 years from the prefeasibility report. Importantly, the MDFS also reduced peak funding requirements by over half to US$17 million.

The mining method selected for the project is a modification on terrace mining with overburden removed by truck and shovel and coal and interburden mined by mechanised continuous surface mining.

“The significance of the mining method that was developed for the Mbeya coal mine cannot be underestimated,” said Louis Coetzee, CEO of Kibo Mining. “The method not only eliminated one of the two biggest environmental risks for the MCPP, i.e. eliminating the need to wash coal, but also required the coal requirement by 23%, which means substantial cost savings for both the mine and power plant.”

The decrease in coal requirements is a result of the particular accuracy of the continuous surface mining technique, which allows coal to be mined at delivered to the power plant at a reliable and consistent calorific value. This ensures optimal fuel efficiencies can be achieved at the power plant, reducing its need for coal, while maintaining its garget output of 1840 GH per year.

With the completion of the MDFS, Kibo is able to complete the final work on the integrated bankable feasibility study for the project.

Edited by Jonathan Rowland.

Read the article online at: https://www.globalminingreview.com/exploration-development/07072016/kibo-completes-mdfs-for-mbeya-project-2016-1098/