Kibo Mining signs memorandum of understanding with TANESCO
Coal exploration and development firm Kibo Mining announced on Wednesday that it had signed a memorandum of understanding with the Tanzania Electric Supply Company (TANESCO) that would see the latter purchase power from the former's 300MW Mbeya coal-to-power project in the African nation.
FTSE AIM All-Share
728.67
15:45 15/11/24
Kibo Energy (CDI)
0.01p
17:30 25/09/24
Mining
10,633.77
15:45 15/11/24
The MOU was just a precursor to the power purchase agreement between TANESCO and Kibo, with the final deal expected to be finalised after receiving authorisation from the Ministry of Energy in "as early as the end of Q1 2018".
In accordance with a pre-agreed framework, the MOU set out clear guidelines, deliverables and timelines for the conclusion of the PPA, which would enable Kibo to move towards execution and conclusion of the final development phase of Mbeya's construction and commissioning.
Kibo looked to complete funding arrangements for the construction and commissioning of Mbeya during the second half of 2018, after which Kibo believes it can be in production in 36 months.
Kibo's chief executive Louis Coetzee, said, "This is a seminal moment for Kibo as a signed MOU signals the official engagement by TANESCO and the Ministry in the formal implementation of the MCPP and moves us to just one step away from finalizing the PPA."
"During the meeting with the Hon. Minister for Energy referred to above, the strategic national importance of the project was reiterated as well as the critical importance of seeing the project completed in less than 36 months if achievable. The Hon Minister also informed the Company that the Ministry is taking proactive steps to ensure an expedited PPA process," he added.
As of 1100 GMT, shares had grown 9.52% to 5.75p.