Finalising Kibo Mining's coal project slower than expected

AIM-listed Kibo Mining’s progress on the finalising its coal project in Tanzania has been slower than expected, although the mineral explorer remains satisfied overall with meeting its strategic objectives.

Chief executive Louis Coetzee said that the company was “very satisfied” with its progress on meeting its strategic objectives for the first quarter of 2017, although progress on finalising the Mbeya coal to power project’s power purchase agreement with the Tanzanian government was “slower than we had hoped”.

He remained upbeat and said that in recent weeks“significant progress” had been made.

The company is currently in talks with the Tanzanian Government following the results of its integrated bankable feasibility study and said it is “well placed” to conclude deal on a power purchase agreement after the completion of Tanzanian Electric Supply Company restructuring and Minister of Energy and Minerals policy changes.

Kibo also said that it is preparing for the financial close on the Mbeya project.

The company has terminated its joint ventures on early stage projects, Morogoro and Pinewood, and planned rationalisation of its remaining early stage exploration projects to focus resources on the Imweru and Lubando gold projects with Opera RTO, an investment firm which is in the final stages of completion and will subsequently be re-admitted to AIM.