Kibo Mining PLC (LON:KIBO) has announced that it has reached the final phase of discussions regarding the Power Purchase Agreement (PPA) for the Mbeya Coal to Power Project (MCPP) with the Tanzania Electric Supply Company (TANESCO).
The AIM-listed energy company said it has submitted a reformatted Integral Bankable Feasibility Study (IBFS) and in accordance with PPA-process, reached the final phase of discussions.
The company said it has previously compiled an extensive IBFS, but TANESCO requested that Kibo reformat IBFS into its own preferred structure and format, although the content remained unchanged.
Kibo said it has resubmitted the reformatted IBFS to TANESCO today and expects to conclude final commercial discussions on the PPA expeditiously.
Louis Coetzee, CEO of Kibo, said: "Whilst the negotiations regarding the PPA for the MCPP have taken longer than we anticipated, it is important to understand that this agreement represents a coal fired power project of a magnitude never dealt before by TANESCO.”
He concluded: “We are hopeful that having completed the reformatted IBFS we can conclude negotiations on the MCPP PPA soon.”
In lunchtime trading, Kibo’s shares rose 2.5% to 4.05p.