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Kibo gets go ahead for Tanzania coal mining

Africa-focused Kibo Energy has been given the green light to start mining coal for its Mbeya ‘coal to power’ project in Tanzania.
Kibo gets go ahead for Tanzania coal mining Kibo gets go ahead for Tanzania coal mining Kibo gets go ahead for Tanzania coal mining Kibo gets go ahead for Tanzania coal mining Kibo gets go ahead for Tanzania coal mining

Kibo has said it is working towards an offtake agreement

The Mbeya project is based on a 120.8 million tonne thermal coal resource, which will be mined by Kibo's 100%-owned subsidiary Mbeya Coal. The project has an IRR of 69.2%, according to a 2016 definitive feasibility study.

Kibo is simultaneously developing two other similar coal-fuelled power projects: the Mabesekwa coal independent power project in Botswana; and the Benga independent power project in Mozambique.

"Receiving these seven mining rights [in Tanzania] to enable commercial mining activity is another key milestone, which we anticipate will provide a better economic outcome for all concerned," said Kibo chief executive Louis Coetzee.

"We are delighted with the excellent cooperation and support of the Mining Commission of Tanzania and look forward to providing further updates in due course."

Kibo confirmed it was in discussions to secure an offtake agreement for the Mbeya power plant as soon as possible, although nothing is confirmed.

Kibo shares (LSE: KIBO) were trading at 0.85p on Thursday. The company's stock has typically traded between 0.75p and 1.78p since the start of 2019.