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KIBO MINING PLC - MCPP Granted Environmental and Social Impact Assessment (ESIA) Certification

Release Date: 27/10/2017 08:00
Code(s): KBO     PDF:  
Wrap Text
MCPP Granted Environmental and Social Impact Assessment (ESIA) Certification

Kibo Mining 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: 27 October 2017

Kibo Mining Plc ('Kibo' or the 'Company')
MCPP GRANTED ENVIRONMENTAL AND SOCIAL IMPACT 
ASSESSMENT (ESIA) CERTIFICATION 

Kibo Mining Plc (AIM: KIBO; AltX: KBO), the multi-asset resource, development and energy 
company focused on Tanzania, is pleased to announce that an Environmental and Social Impact 
Assessment ("ESIA") Certificate has been awarded to both the Mbeya Coal Project and to the Mbeya 
Power Generation Project by the Tanzanian Government. 

The ESIAs are an integral element of the Mbeya Coal to Power Project ("MCPP") approval process 
and a further milestone in the development of this critical energy project in Tanzania.  The ESIA 
application, submitted to the government in February, is a 1,000-page document setting out the 
developer's technical, environmental and social assessment of the two components of the MCPP. The 
application was subjected to thorough review by all relevant authorities and key stakeholders before 
granting of approval. The ESIA constitutes a key element of corporate social responsibility and 
ultimately, of a company's licence to operate.

Located in South West Tanzania, the MCPP is developing a coal mine in tandem with a 300MW 
'mine mouth' power station, aiming to satisfy the acute need for power in the country.  The project 
benefits from strong local regional and governmental support, who see it as a national priority playing 
a key role in the Mtwara development corridor. The project, which partners with SEPCO III, a large 
Chinese construction and engineering company that designs, builds and operates power plants, was 
recently awarded General Electric's Innovative Project of The Year award.

Granting of the ESIA comes as a latest milestone in the MCPP's development cycle.  The Company 
has already successfully completed a Power Pre-Feasibility Study, a Mining Pre-Feasibility Study, a 
Definitive Power Feasibility Study, a Definitive Mining Feasibility Study, an Independent Integrated 
Financial Model and an Integrated Bankable Feasibility Study.

Kibo Mining Plc CEO, Louis Coetzee, said, "This is terrific news for Kibo and brings us another 
step closer to construction. The endorsement of the MCPP as a consequence of the ESIA certification 
cannot be underestimated - this is probably the most important enabler for the successful and 
expeditious completion of the remaining development work on the MCPP.

Furthermore, we have had several very productive meetings with the newly established Ministry of 
Energy over the past two weeks which confirmed our view that the Memorandum of Understanding 
("MOU") on the Power Purchase Agreement ("PPA") is progressing well and that it will be finalized 
shortly. Once the MOU, and thereafter the final PPA, is signed we envisage being in production in 36 
months, bringing light to homes and businesses in Tanzania and making a strategic contribution 
towards enabling the local economy and delivering cumulative long-term value to our shareholders." 



**ENDS**
 
For further information please visit www.kibomining.com or contact:
 
 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        Beaufort Securities       Broker
                   8300                   Limited
                                                      
 Andrew Thomson    +61 8 9480 2500        RFC Ambrian               Nominated Adviser
                                          Limited                   on AIM
 Hugo de Salis /   +44 (0) 207 2361177    St Brides Partners        Investor and Media 
  Priit  Piip                             Ltd                       Relations Adviser
       
 
Notes to editors:
Kibo Mining is a multi-asset resource development and energy company focused on South West 
Tanzania, listed on London's AIM market and the AltX in Johannesburg.  The Company's flagship 
asset is the Mbeya Coal to Power Project ('MCPP'), which comprises the development of the Mbeya 
Coal Mine, a 1.5Mt p/a mining operation and the Mbeya Power Plant, a 300 MW mine-mouth thermal 
power station.

The Mbeya Coal Mine has a defined 120.8 Mt NI 43 101 thermal coal resource.  A Definitive 
Feasibility Study has been conducted on the project which underpins its value with an indicated IRR 
of 69.2%.  The 300 MW mouth-of-mine thermal power station has long term scalability to 1000MW, 
with a full Power Feasibility Study that has been published highlighting an annual power output target 
of 1,8 GW based on annual average coal consumption of 1.5 Mt.  An Integrated Bankable Feasibility 
Study report for the entire project indicated total potential revenues of US$ 7.5-8.5 billion over an 
initial 25-year mine life, post tax equity IRR between 21-22%, debt pay-back period of 11-12 years 
and a construction period of 36 months.  

To assist in the execution this critical power project of the MCPP, Kibo has assembled a team of 
international team of advisors and partners including Engineering Procurement and Construction 
('EPC') contractors and financial teams that are assisting in the development of.  These include 
ABSA/Barclays as Financial Advisor, China based EPC contractor SEPCO III, General Electric, 
Tractebel Engineering (Power), Minxcon Consulting (Mining) and legal advisors Norton Rose 
Fulbright.

Kibo also holds the Haneti Project on which the latest technical report confirms prospectivity for 
nickel, PGMs, gold and strategic metals including lithium and Rare Earth Elements.

Kibo Mining's projects are located in central Tanzania and in 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.  Kibo Mining recognises the 
potential to enhance the quality of life and opportunity for Tanzanian citizens through careful 
development of its projects.

This announcement contains inside information as stipulated under the Market Abuse Regulations
(EU) no. 596/2014 ("MAR").

Johannesburg
27 October 2017
Corporate and Designated Adviser
River Group
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