Kibo Mining welcomes Mbeya feasibility study

Kibo Mining's shares rose almost 7% as it said a mining feasibility study for the Mbeya Coal Mine in Tanzania confirmed it as a robust project in every aspect.

It said results from the study correlated accurately with those of the mining pre-feasibility study from August 2015.

They also reconfirmed the mine was a robust project with strong financial and commercial indicators.

"We are particularly pleased with the improved internal rate of return of 69.2% and the significantly improved environmental impact," said chief executive Louis Coetzee.

"The significance of the mining method that was developed for the Mbeya coal mine cannot be underestimated," he added in a statement.

Coetzee said that this method not only eliminated one of the two biggest environmental risks for the Mbeya Coal to Power Project, but also reduced the coal requirement by 23%, which meant substantial cost savings for both the mine and the power plant.

It would also result in a corresponding reduction in emissions.

"The power plant can rely on an upfront guaranteed fuel supply for its entire life span," Coetzee said.

At 12:44 BST, shares in Kibo Mining were up 6.18% to 5.84p.