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Kibo one step closer to a Special Mining License for Mbeya coal mine

Published by , Assistant Editor
Global Mining Review,

The Mining Commission of Tanzania has recommended Africa-focused energy company Kibo Energy PLC’s (Kibo's) Mbeya coal mine for grant of a Special Mining Licence. The Mbeya Coal mine comprises the mining component of the Mbeya Coal to Power Project (MCPP).

Additionally, further to the announcement dated 18 September 2018, Kibo has also submitted a request to the Tanzania Electricity Supply Company (TANESCO) asking for further clarification on the impact / affect the tender process for coal power projects may or may not have on its ongoing Power Purchase Agreement (PPA) negotiations with TANESCO in respect of the company’s MCPP in the Songwe district in southwestern Tanzania.

Meanwhile, the company has engaged in the tender process and has already obtained the relevant documentation for submission of the tender qualification as stipulated in the Invitation for Qualification (IFQ). The company’s current understanding of the broad technical criteria outlined in the tender documentation, shows that Kibo qualifies on each of these aspects and is at a significantly more advanced development stage with regard to most of the minimum requirements contained therein.

CEO of Kibo, Louis Coetzee, said: “Receipt of the Special Mining Licence will be a further box ticked in the MCPP’s development plan. Whilst timelines could be affected by TANESCO’s recent initiation of a tender process, the strong fundamentals of the project remain unaffected: the MCPP is a key energy project positioned to help alleviate Tanzania’s acute power deficit. With local, governmental and international support, we remain focused and confident on advancing the project through the very last steps of the planning and development phase to first power production. We believe we remain firmly on course to deliver the MCPP and our two other utility scale projects in Botswana and Mozambique respectively.”

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African mining news