KIBO MINING PLC - Kibo appoints Tractebel to conduct Mbeya Coal to Power Project Power Feasibility Study

Kibo appoints Tractebel to conduct Mbeya Coal to Power Project Power Feasibility Study

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:  IE00B97C031
("Kibo" or "the Company")


09 November 2015


Kibo appoints Tractebel to conduct Mbeya Coal to Power Project Power Feasibility Study 

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed 
mineral exploration and development company, is pleased to announce that it has engaged 
Tractebel Engineering ("Tractebel"), a 100% subsidiary of Engie (Formerly GDF Suez), to 
conduct the definitive feasibility study for the Mbeya Coal to Power Project ("MCPP") Power 
Component and any additional work, inclusive of the role as owners engineer, which the Company 
and Tractebel may agree upon for subsequent development phases of the Project.  

Key highlights

*The Definitive Power Feasibility Study ("DPFS") to commence immediately

*Timelines for completion of DPFS still on track 

*Favourable commercial terms in Tractebel agreement relieve pressure on cash flow and 
short-term funding considerably

*Appointment of Tractebel to conduct DPFS forms part of broader co-operation agreement 
for the MCPP


Louis Coetzee, CEO of Kibo Mining, said: "The appointment of Tractebel marks a major strategic 
breakthrough in the development of the MCPP. Tractebel has one of the best international 
reputations for the development and construction of power facilities like the MCPP. 

The MCPP will benefit immensely from the wealth of experience and knowledge in Tractebel. The 
commercial terms on which Tractebel was engaged will furthermore relieve pressure on Kibo's 
short term cash flow requirements and funding needs substantially. This will in turn potentially 
enable Kibo to complete the definitive feasibility studies for both the mine and the power plant and 
to advance the MCPP up to bankable feasibility study ("BFS") without the need to give away any 
of Kibo's equity in the MCPP, of which the Company still owns 100%.

The appointment of Tractebel also completes the process of providing Kibo with adequate 
capacity to develop, construct and commission the MCPP. The MCPP now has the benefit of 
reputable capabilities in the form of MinXcon to complete mining feasibility work, Tractebel to 
complete the feasibility studies on the power plant, SEPCO III as preferred EPC contractor and 
Standard Bank as financial advisor."

Agreement

Tractebel was contractually engaged by Kibo to conduct the MCPP DPFS and to continue 
thereafter as owner's engineer during subsequent development stages of the MCPP power 
component. The agreement followed a period of negotiations during which Tractebel 
demonstrated a very keen understanding of the challenges that Kibo is facing at this stage of the 
development of the MCPP. It was subsequently possible to engage with Tractebel on a basis 
where all Kibo's technical, operational and financial priorities were met satisfactorily. 55% of the 
cost associated with the work on the DPFS will only be payable after completion of the Feasibility 
Study, of which a substantial part will only be payable near / at the time when the MCPP reaches 
financial close, which Kibo considers to be to its commercial benefit.

Work on the DPFS will commence immediately and the appointment of Tractebel to conduct the 
DPFS will happen within the framework of a broader co-operation agreement between Tractebel 
and Kibo which extends beyond the scope of the DPFS and the development and construction 
phases of the MCPP.

Tractebel Engineering Background
Tractebel is an international company with more than 125 years of expertise, providing worldwide 
life-cycle consultancy and engineering in energy, water and infrastructure projects to national and 
international institutions and customers in public or private markets.  Tractebel's services cover 
the whole lifecycle of these projects, from feasibility studies to decommissioning. Part of the 
Engie Group and headquartered in Belgium, Tractebel Engineering totals 4,400 employees 
worldwide, operates or has offices in 33 countries most notably India, Brazil, Belgium, France, 
South Africa, Italy, Poland, Romania and Czech Republic and is involved in projects in 140 
countries. Tractebel Engineering has successfully, over 50 years, developed multidisciplinary and 
ambitious hydro and hydro-electric projects in Africa. 

Through its acquisition of the Lahmeyer Group in December 2014, Tractebel has extended its 
footprint in Africa, Asia and South America, as in Europe exponentially. Lahmeyer Consulting 
Engineers Tanzania Ltd. was presented a 2015/2016 Top 100 Mid-Sized Company Award, by 
KPMG and the leading regional business magazine THE CITIZEN. Lahmeyer Tanzania was 
placed 11th among 100 companies. (http://www.tractebel-engineering-gdfsuez.com/; 
http://www.lahmeyer.com/en/home.html) 
Tractebel is active in the fields of power generation (coal, oil and gas fired power stations, 
renewable energy, hydro power energy and nuclear energy), desalination plants, ttransmission and 
distribution lines and substations, Gas & LNG, Energy Transition, Power system consulting, 
Smart and Sustainable Infrastructure and Water.  In this regard:
*TE Tractebel combines the availability of a Consulting Engineer with the experience of an 
Operator
*Its network of competences reaches around the globe allowing it to select and deploy the best 
available capacity to the project
*Through its  Thermal Power Generation team, Tractebel has a very strong international track 
record in Coal Fired Power Plants; 
*Its presence in Africa is well established as it has been active on the continent for over 150 
years;
*It has successfully led major projects for different international funding agencies (EBRD, 
World Bank, African Development Bank, Asian Development Bank, to name a few), in 
accordance with the prescribed procedures and standards of these agencies
*Tractebel's strength is its capacity to combine technological, economic, environmental and 
legal expertise through multidisciplinary teams, tailor-made to meet the requirements of each 
particular project
*Tractebel claims strict independence from the suppliers serving the power industry


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 Thšle / 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 Rukwa, which has a significant JORC compliant 
defined resource (See Table 1 below), and is developing a 250-350MW mouth-of-mine thermal 
power station, the Mbeya Coal to Power Project ("MCPP"), previously called Rukwa Coal to 
Power Project ("RCPP"), 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 Coal-Power interim study report 
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 550,000oz JORC 
compliant gold Mineral Resource at Imweru Project (See Table 2 below) and a 168,000oz NI 
43-101 compliant gold Mineral Resource at the Lubando Project (See Table 3 below) 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 prioritised 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 recognises 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
09 November 2015
Corporate and Designated Adviser
River Group



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