Sign up Australia
Proactive Investors - Run By Investors For Investors

Kibo Mining makes progress on three fronts in Tanzania and Botswana

Tanzania, and the wider East African region, are acutely short of power
Kibo is expanding its coal to power portfolio in Africa

Kibo Mining PLC (LON:KIBO) has been busy over the past twelve months.

The flagship Mbeya thermal power station project in Tanzania is ready to go once a power purchase agreement (PPA) can be agreed with the country’s electricity company.

Katoro, the company’s gold assets, were spun out in May with a separate listing, while in November it acquired a power station development in Botswana to leverage the knowledge acquired from Mbeya.

The group picked up an 85% stake in Mabesekwa from Sechaba, a subsidiary of Shumba Energy, for about £9mln to be paid in shares.

Mbeya the flagship

Mbeya is Kibo’s flagship asset. The plan is to develop the Mbeya coal mine as a 1.5mln tonne operation based on a defined 120.8 mln tonne resource and the Mbeya Power Plant as a 300MW mine-mouth power station with leeway for this capacity eventually to double.

Tanzania, and the wider East African region, are acutely short of power and the project has received strong support from both the government and international companies.  

The Tanzanian Government has targeted the delivery of 5GW installed generation capacity by 2020 with a further 7GW to be added in the following five years.

The project through is being held up by negotiations over the PPA.

In January, Kibo said that  “significant progress” had been made towards the expedited PPA.

The PPA – which is essentially the Tanzanian government and TANESCO agreeing to buy the power in advance – is needed for Kibo to complete the financing for the project.

Once that is in hand, the AIM-listed firm believes it can get the MCPP into production within 36 months.

Potential at Katoro Gold

At Katoro, a Light Detection and Ranging (LiDAR) survey at the Imweru gold project was completed at the end of the year, with the data to be to support the final resource estimation and optimised mine design.

READ: Katoro Gold to create digital map of Imweru prospect in Tanzania

Louis Coetzee, executive chairman, said: "We are fast-tracking the work programme at Imweru and delighted with the speed at which it is progressing. 

"As we move into 2018, we anticipate a steady flow of news as we hit key trigger points including the completion of the PFS, drilling programme, a feasibility study and the application for a Mining Licence as well as the final phase of the Environmental and Social Impact Assessment."

Mabesekwa a ‘fantastic opportunity’

Like Mbeya, Mabesekwa will be a power plant based on coal produced from a resource at the site.

The project will utilise 300Mt of the existing 777Mt coal resource.

Coetzee described it as a "fantastic opportunity" especially as it was located in Botswana.

“The synergies with our flagship MCPP [Mbeya] project in Tanzania are impossible to ignore, placing us in a strong position to utilise our knowledge and contacts to rapidly advance both projects to production in a short time-frame.”

At 6p, Kibo is valued at £22mln.

View full KIBO profile View Profile

Kibo Energy PLC Timeline

Related Articles

August 29 2018
The Kwale mine in Kenya is now a major player in the ilmenite, rutile and zircon markets
July 18 2018
Tsodilo Resources is currently evaluating a diamond project situated right in the heart of one of the world's most prolific diamond-producing areas
Picture of gold bar
March 21 2018
Dandoko is in the Kenieba inlier where more than 50-million ounces of gold have been discovered.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use