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JV Agreement with Termoeléctrica de Benga S.A. Finalised and Feasibility Study Commences on Mozambique Power Project
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: 28 June 2018
Kibo Mining Plc (‘Kibo’ or the ‘Company’)
Joint Venture Agreement with Termoeléctrica de Benga S.A. Finalised and Feasibility Study
Commences on Mozambique Power Project
Kibo Mining plc (AIM: KIBO; AltX: KBO), the multi-asset Africa focused energy and resource company, is
pleased to announce, further to the RNS of 6 June 2018, that it has finalised the Joint Venture Agreement (‘JV’)
with Mozambique energy company Termoeléctrica de Benga S.A. (‘Termoeléctrica’) regarding the
development of the Benga Independent Power Project (‘Benga’, ‘BIPP’, or ‘the Project’). This agreement
includes the right to construct and operate a 150-300MW coal fired power station and is synergistic with the
Company’s other two projects, the Mbeya Coal to Power Project (‘MCPP’) in Tanzania and the Mabesekwa
Coal Independent Power Project (‘MCIPP’) in Botswana.
With the JV finalised, a full feasibility study on Benga has commenced, designed to confirm its commercial and
operational viability; it will include a Pre-Feasibility Study (‘PFS’), Definitive Feasibility Study (‘DFS’) and
an Environmental Impact Assessment (‘EIA’), in addition to economic assessments, which will include a
comprehensive financial model.
Furthermore, formal discussions regarding a Power Purchase Agreement (‘PPA’) between Kibo and prospective
off-takers of the BIPP have been initiated. Notably, discussions with, and formal letters of comfort already
received from; various power supply off-takers have indicated an initial demand for up to approximately
150MW; thermal coal producers have stated a willingness and intent to discuss terms and conditions for the
supply of thermal coal as a feedstock for the planned power plant.
Louis Coetzee, CEO of Kibo Mining, said: “With all the JV conditions met in a very short time frame, we are
going full steam ahead with the development of Benga with the commencement of a comprehensive feasibility
study. Utilising our experience gained from the development of the MCPP as well as the strategic positioning
of the BIPP, we are able to immediately commence the PPA discussions. With letters of comfort for 150MW
from multiple power supply off-takers in place and thermal coal producers stating terms and conditions to
supply the plant with necessary coal, we are in a strong position to expedite the development of the BIPP.
“EDM has a public mandate to connect 400,000 new clients to the national grid every year as currently only
30% of Mozambique has access to electricity. Demand has been growing consistently by 6-8% per year and
even more rapidly in the north at around 20% due to the many mining operations underway. The BIPP, in
conjunction with the Mbeya Coal to Power Project and Mabesekwa Independent Coal to Power Project,
presents a unique opportunity for Kibo to achieve its objective of becoming a leading energy player in the
region. With much achieved in a relatively quick timeframe, we are very pleased with the progress made so
far.”
**ENDS**
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no.
596/2014 ("MAR").
For further information please visit www.kibomining.com or contact:
Louis Coetzee info@kibomining.com Kibo Mining Plc Chief Executive Officer
Andreas Lianos +27 (0) 83 4408365 River Group Corporate and Designated
Adviser on JSE
Ben Tadd / +44 (0) 20 3700 0093 SVS Securities Joint Broker
Tom Curran Limited
Jon Belliss +44 (0) 20 7399 9400 Novum Securities Ltd Joint Broker
Andrew Thomson +61 8 9480 2500 RFC Ambrian Limited NOMAD on AIM
Isabel de Salis / +44 (0) 20 7236 1177 St Brides Partners Ltd Investor and Media
Priit Piip Relations Adviser
Notes to editors
Kibo Energy plc is a multi-asset, Africa focussed, energy company positioned to address the acute power deficit,
which is one of the primary impediments to economic development in Sub-Saharan Africa. To this end, it is
the Company’s objective to become a leading independent power producer in the region.
Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power Project
(‘MCPP’) in Tanzania; the Mabesekwa Coal Independent Power Project (‘MCIPP’) in Botswana; and the Benga
Independent Power Project (‘BIPP’) in Mozambique. By developing these projects in parallel, the Company
intends to leverage considerable economies of scale and timing in respect of strategic partnerships, procurement,
equipment, human capital, execution capability / capacity and project finance. Additionally, the Company will
benefit from its robust and experienced international blue-chip partnership network across its project portfolio,
which includes: SEPCO III (China), General Electric (USA); Tractebel Engineering (Belgium); Minxcon
Consulting (South Africa); ABSA / Barclays Africa); and Hogan Lovells International LLP.
Johannesburg
28 June 2018
Corporate and Designated Adviser River Group
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