KIBO MINING PLC - Kibo Mining Plc Mbeya Coal to Power Project MOU and PPA Update

Kibo Mining Plc Mbeya Coal to Power Project MOU and PPA Update


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’)

Dated: 10 January 2018 


Kibo Mining Plc (‘Kibo’ or the ‘Company’)Mbeya Coal to Power Project MOU and PPA Update


Kibo Mining Plc (AIM:KIBO; AltX:KBO), the multi-asset, African focused energy and 
resource  company, is pleased to announce an update on the Memorandum Of Understanding 
(‘MOU’) and Power Purchase Agreement (‘PPA’) for the Mbeya Coal to Power Project 
(‘MCPP’) following a productive meeting with the Tanzania Ministry for Energy (‘the 
Ministry’) and Tanzania Electric Supply Company (‘TANESCO’) on Monday 8 January 2018 
during which significant progress was made towards the expedited completion of the PPA 
process. 

The meeting demonstrated a clear strategy on the part of the Ministry and TANESCO for 
the prompt conclusion of the PPA process, which will enable financial close of the MCPP, 
which the Company believes could then be in production in 36 months. Clear deliverables 
were identified, and individual roles and responsibilities agreed to ensure successful 
completion of the PPA by the end of Q1 2018.  To ensure that this expedited PPA deadline 
can be met, the Ministry proposed specific changes to the MOU to create a more 
streamlined process and procedure; and within this context the Ministry and TANESCO made 
firm commitments to deliver the signed MOU by no later than 31 January 2018. 

Louis Coetzee, CEO of Kibo Mining, commented: “Kibo is encouraged by the diligent 
approach taken by the Ministry and TANESCO in taking decisive pre-emptive steps to 
secure an expedited PPA process; we remain positive that the Ministry will honor its 
commitment to meet the deadlines and deliverables agreed upon during Monday’s meeting.

“We should be very clear on the fact that the most important date at this stage is not 
the date on which the MOU is signed (the MOU is only a means to an end, i.e. the PPA), 
but the date on which we have a final PPA in hand.  At the meeting on Monday, the 
commitment of all stakeholders was secured for a firm expedited PPA date, demonstrating 
positive progress. 

Benefiting from strong regional and local support, the MCPP is of key national 
importance, aiming to alleviate the acute power deficiency in Tanzania. As such, signing 
the PPA will be a pivotal moment for Kibo and the development of the MCPP.  We would 
like to thank our shareholders for their continued support and I look forward to 
updating them further in the near future.”

**ENDS**


For further information please visit www.kibomining.com or contact:
 
Louis Coetzee
louisc@kibomining.com 
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

Andrew Thomson
+61 8 9480 2500
RFC Ambrian Limited
NOMAD on AIM

Isabel de Salis / Priit Piip
+44 (0) 207 236 1177
St Brides Partners Ltd
Investor and Media Relations Adviser

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


Notes to editors

The Mbeya Coal to Power Project (‘MCPP’), 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 completed, 
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.


Johannesburg
10 January 2018
Corporate and Designated Adviser
River Group






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