Kibo Mining finalises Benga joint venture agreement

Kibo's deal with Termoeléctrica will see the pair construct and operate a 150-300MW coal-fired power station in Mozambique, known as the Benga Independent Power Project.

The group said the Benga project was "synergistic" with its other two projects, the Mbeya Coal to Power Project in Tanzania and the Mabesekwa Coal independent power project in Botswana.

With the joint venture finalised, Kibo has launched a full feasibility study on the project and formal discussions regarding a power purchase agreement between Kibo and prospective off-takers have been initiated.

Louis Coetzee, chief executive of Kibo Mining, said, "With all the JV conditions met in a very short time frame, we are going full steam ahead with the development of Benga with the commencement of a comprehensive feasibility study."

"With letters of comfort for 150MW from multiple power supply off-takers in place and thermal coal producers stating terms and conditions to supply the plant with necessary coal, we are in a strong position to expedite the development of the BIPP," added Coetzee.

As of 1000 BST, Kibo shares had grown 3.55% to 4.38p.