Kibo appoints Tractebel to conduct Mbeya Coal to Power Project Power Feasibility Study
AA – Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company, is pleased to announce that it has engaged Tractebel Engineering (“Tractebel”), a 100% subsidiary of Engie (Formerly GDF Suez), to conduct the definitive feasibility study for the Mbeya Coal to Power Project (“MCPP”) Power Component and any additional work, inclusive of the role as owners engineer, which the Company and Tractebel may agree upon for subsequent development phases of the Project.
• The Definitive Power Feasibility Study (“DPFS”) to commence immediately
• Timelines for completion of DPFS still on track
• Favourable commercial terms in Tractebel agreement relieve pressure on cash flow and short-term funding considerably
• Appointment of Tractebel to conduct DPFS forms part of broader co-operation agreement for the MCPP
Louis Coetzee, CEO of Kibo Mining, said: “The appointment of Tractebel marks a major strategic breakthrough in the development of the MCPP. Tractebel has one of the best international reputations for the development and construction of power facilities like the MCPP.
The MCPP will benefit immensely from the wealth of experience and knowledge in Tractebel. The commercial terms on which Tractebel was engaged will furthermore relieve pressure on Kibo’s short term cash flow requirements and funding needs substantially. This will in turn potentially enable Kibo to complete the definitive feasibility studies for both the mine and the power plant and to advance the MCPP up to bankable feasibility study (“BFS”) without the need to give away any of Kibo’s equity in the MCPP, of which the Company still owns 100%.
The appointment of Tractebel also completes the process of providing Kibo with adequate capacity to develop, construct and commission the MCPP. The MCPP now has the benefit of reputable capabilities in the form of MinXcon to complete mining feasibility work, Tractebel to complete the feasibility studies on the power plant, SEPCO III as preferred EPC contractor and Standard Bank as financial advisor.”
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