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Mbeya Coal to Power Project Commences with Formal EPC Bid Process for Mbeya Power Plant and Mbeya Coal Mine
Kibo Mining Plc (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO Share code on the AIM: KIBO
ISIN:IE00B97C0C31
(“Kibo” or “the Company”)
03 June 2016
Mbeya Coal to Power Project Commences with Formal EPC Bid Process for Mbeya Power Plant
and Mbeya Coal Mine
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed
mineral exploration and development company is pleased to announce that feasibility work
on the Mbeya Coal to Power Project (“MCPP”) has now advanced to a level where the
Company can commence with the formal EPC-bid process for both the Mbeya Power Plant and
the Mbeya Coal Mine.
On 31 May 2016 the Company met with SEPCO III in Dar es Salaam to initiate the EPC bid
process for the Mbeya Power Plant, in accordance with the provisions of the Joint
Development Agreement (“JDA”) in place between the Company and SEPCO III. The meeting
in Dar es Salaam marked the official start of the EPC-bid process and will be followed
by a two day work session in Brussels in mid-June. During this second work session,
Tractebel Engineering will brief and guide SEPCO III on the EPC bid process and
procedure in accordance with the relevant JDA requirements. The first step in this
process will require SEPCO III to agree and commit to an equity investment in the MCPP
in order to obtain the right to be the sole EPC bidder for the Mbeya Power Plant EPC
contract.
In the event that SEPCO III is named as the sole bidder for the EPC contract, SEPCO III’s
bid will remain subject to various pre-conditions related to price, technical standards,
operational standards etc. which must be met for the EPC contract to be awarded. The bid
process will take place under the control and supervision of Tractebel Engineering as
independent Qualified Person and in accordance with a pre-set, internationally benchmarked
specification and standard. If the bid succeeds in meeting the Tractebel Engineering
specification it will also require that the bid terms are approved by the Company and any
debt providers to the MCPP.
The EPC bid process for the Mbeya Coal Mine is also well under way and the Company will
today receive the first EPC budget quotations from eight bidders who have expressed an
interest to bid for the Mbeya Coal Mine EPC and mining contract.
Louis Coetzee, CEO of Kibo Mining plc said "The MCPP is now speeding towards completion
of the Integrated Bankable Feasibility Study for the MCPP and we are very pleased with
progress, but more so with the results from the Power Definitive Feasibility Study as
well as the preliminary results from the Mining Definitive Feasibility Study.”
Contacts
Louis Coetzee
+27 (0) 83 2606126
Kibo Mining plc
Chief Executive Officer
Andreas Lianos
+27 (0) 83 4408365
River Group
Corporate Adviser and Designated Adviser on JSE
Jon Belliss
+44 (0) 207 382 8300
Beaufort Securities Limited
Broker
Oliver Morse
+61 8 9480 2500
RFC Ambrian Limited
Nominated Adviser on AIM
Daniel Thöle / Anna Legge
+44 (0) 203 772 2500
Bell Pottinger
Investor and Media Relations
Kibo Mining - Notes to editors
Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. The
Company is focused on exploration and development of mineral projects in Tanzania, and
controls one of Tanzania's largest mineral right portfolios. Tanzania provides a secure
and stable operating environment for the mineral resource industry and Kibo Mining
therein.
Kibo Mining holds a thermal coal deposit at Mbeya, which has a significant NI 43-101
compliant defined resource, and is developing a 250-350 MW mouth-of-mine thermal power
station, the Mbeya Coal to Power Project (“MCPP”), previously called Mbeya Coal to Power
Project (“MCPP”), with an established management team that includes Standard Bank as
Financial Advisor. Kibo is undertaking a Coal Mining Definitive Feasibility Study and a
Power Pre-Feasibility Study for the Mbeya project with an integrated Bankable Feasibility
Study report for the MCPP to be released in the near term. On 20th April 2015, Kibo
signed a Joint Development Agreement for the completion of the Definitive Feasibility
Studies and development of the MCPP with China based EPC contractor SEPCO III.
The Company also has extensive gold focused interests including Lake Victoria Goldfields
and Morogoro projects. At Lake Victoria, the Company has projects with a 550,000 oz. JORC
compliant gold Mineral Resource at Imweru Project and a 168,000 oz. NI 43-101 compliant
gold Mineral Resource at the Lubando Project in which the Company holds a 90% attributable
interest. The Company is currently undertaking a Definitive Feasibility Study on its
Imweru Project.
Kibo also holds the Haneti Project on which the latest technical report confirms
prospectivity for nickel, PGMs, gold and strategic metals including lithium.
Kibo Mining further holds the Pinewood (coal & uranium) project where the company has
entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.
Finally, the Company also holds the Morogoro (gold) project where the company has also
entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.
The Company's projects are located in the established and gold prolific Lake Victoria
Goldfields, the emerging goldfields of eastern Tanzania and the Mtwara Corridor in
southern Tanzania where the Government has prioritized infrastructural development
attracting significant recent investment in coal and uranium. The Company has a positive
working relationship with the Tanzanian government at local, regional and national levels
and works hard to maintain positive relationships with all communities where company
interests are held. The Company recognizes the potential to enhance the quality of life
and opportunity for Tanzanian citizens through careful development of its projects.
Updates on the Company's activities are regularly posted on its website www.kibomining.com
Johannesburg
03 June 2016
Corporate and Designated Adviser
River Group
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