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Benga Power Plant Project Update
Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
(“Kibo” or “the Company”)
Dated: 22 December 2020
Kibo Energy PLC (‘Kibo’ or the ‘Company’)
Benga Power Plant Project Update
Kibo Energy PLC ("Kibo" or the "Company"), the multi-asset, Africa focused, energy company, is
delighted to provide a progress update on the Benga Power Plant Project in Mozambique (“BPPP”).
Highlights
* Current Non- Binding Term Sheet for Coal Supply from Vale converted into a mutually binding
Term Sheet to secure coal supply for BPPP; (See RNS of 5 September 2019);
* Lesedi Nuclear Services (Pty) Ltd (“LNS”) completed optimized Definitive Feasibility Study
(“DFS”) based on current Base Case DFS successfully, enhancing project economic viability and
bankability; and
* Findings of the final draft optimized DFS presented to the technical and commercial team of EDM
on 17 December 2020.
CSTS with Vale
The Company has entered into a mutually binding Coal Supply Term Sheet (‘CSTS’) with Vale
Mozambique, S.A. (‘Vale’) to supply coal to the Benga Power Plant Project in Mozambique ('BPPP’).
The CSTS commits the parties to a supply agreement that will meet the full operational coal requirement
of a 150 MW (gross generation capacity) coal fired power plant. The CSTS will be converted into a
definitive Coal Supply Agreement (“CSA”) as part of the process during which a final Power Purchase
Agreement (“PPA”) is finalized with EDM
Vale is a local coal miner, and subsidiary of Vale SA, one of the world’s largest diversified miners,
situated in very close proximity to the BPPP site. The CSTS with Vale was based on the findings of
the optimized DFS which indicated that a blend of varying quality bituminous coal can be fed to the
Power Plant CFB boiler. Vale has the capacity and capability to supply the different coal qualities for
an optimal blend and the CSTS provides for a supply of c. 650 000 tonnes of coal per annum, structured
to supply the various coal qualities required for the optimal blend.
Optimized DFS
LNS have completed and delivered a final draft of the BPPP optimized DFS study to Kibo. This
optimization study focused on conducting various trade-off studies most notably:
* Investigating the coal characteristics in more specific detail as well as the tolerance of the
coal blending ratio variances in the CFB boilers
* Consideration of various clean coal technologies – (E.g., the power plant has been designed
to be ‘carbon capture ready’)
* Site location study with trade-off work conducted on various other possible sites
* Optimal boiler sizing
* Geotechnical considerations that may impact on building and operating the Benga power
plant on the designated site
* Updating of the Financial Model
* Coal haulage road selection
The Company is currently reviewing the findings from the optimized DFS and a final version of the
optimized DFS will be delivered to the Company in early January 2021. These findings were also
presented to EDM during a preliminary DFS-briefing on 17 December 2020. The preliminary briefing
concluded with several next steps agreed between the parties. These next steps are in preparation for
further technical and commercial discussions that relates to the development and agreement of a PPA,
following the agreed process and procedure set out in the existing MOU with EDM. Said discussions
have been set for January 2021.
Louis Coetzee, CEO of Kibo Energy, commented:
“We are extremely pleased with the progress on the Benga project, as the technical work is now nearing
completion and seamlessly integrates with the commercial and statutory developments. The optimised
DFS and binding term sheet for a Coal Sale Agreement are key cornerstones / prerequisites to take the
EDM PPA negotiations progressively forward towards agreeing a final PPA.”
“The ongoing and increasingly negative impact of COVID-19 has caused numerous delays during the
past year, most notably regarding the inability to travel freely and conduct on-site work in an unfettered
manner. Despite these constraints the BPPP made significant strides forward during 2020 and we have
been able to sustain forward momentum and in fact gain significant new momentum towards the end of
2020. It is with this momentum that we will be entering 2021 and with firm confidence that the BPPP
can still be delivered within the broad timelines discussed in previous announcements.”
**ENDS**
This announcement contains inside information as stipulated under the Market Abuse Regulations
(EU) no. 596/2014.
For further information please visit www.kibo.energy or contact:
Louis Coetzee info@kibo.energy Kibo Energy PLC Chief Executive Officer
Andreas Lianos +27 (0) 83 4408365 River Group JSE Corporate and Designated
Adviser
Thomas Smith +44 (0) 20 7392 1494 ETX Capital Limited Joint Broker
Bhavesh Patel / Stephen +44 20 3440 6800 RFC Ambrian Limited NOMAD on AIM
Allen
Charlotte Page / Beth +44 (0) 20 7236 1177 St Brides Partners Ltd Investor and Media Relations Adviser
Melluish
Notes
Kibo Energy PLC is a multi-asset, Africa focused, energy company positioned to address the acute
power deficit, which is one of the primary impediments to economic development in Sub-Saharan
Africa. To this end, it is the Company’s objective to become a leading independent power producer in
the region.
Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power
Project (‘MCPP’) in Tanzania; the Mabesekwa Coal Independent Power Project (‘MCIPP’) in Botswana;
and the Benga Independent Power Project (‘BIPP’) in Mozambique. By developing these projects in
parallel, the Company intends to leverage considerable economies of scale and timing in respect of
strategic partnerships, procurement, equipment, human capital, execution capability / capacity and
project finance.
Additionally, the Company has a 60% interest in MAST Energy Developments Limited (‘MED’), a
private UK registered company targeting the development and operation of flexible power plants to
service the UK Reserve Power generation market.
Johannesburg
22 December 2020
Corporate and Designated Adviser
River Group
Date: 22-12-2020 10:00:00
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