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
Date: 27/10/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.