Kibo Mining Plc MCPP Gains Momentum after Talks with Stakeholders (0337I)
14 June 2017 - 4:00PM
UK Regulatory
TIDMKIBO
RNS Number : 0337I
Kibo Mining Plc
14 June 2017
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")
14 June 2017
Accelerated Development of Mbeya Coal to Power Project ("MCPP")
Gains Significant Momentum from Latest Follow-up Discussions with
Tanzanian Stakeholders
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX:
KBO), the Tanzania focused mineral exploration and development
Company, is pleased to announce that a series of meetings, held
with the key Tanzanian stakeholders in the MCPP resulted in
significant progress for the further development of the
Project.
The recent request for an expedited development of the MCPP (See
RNS of 01 June 2017) was followed by active interaction between all
stakeholders in the MCPP, which culminated in a series of progress
meetings held on the 12(th) and 13(th) June 2017. The following key
points emanated from said meetings:
1. A clear agenda and associated schedule has been agreed with
relevant Government stakeholders to work on those specific
development aspects of the MCPP that are dependent on negotiating,
agreeing and concluding agreements / approvals with the Tanzanian
Government;
2. The Environmental and Social Impact Assessment ("ESIA")
submissions for the Mbeya coal mine and Mbeya Power station have
been duly processed for certification, pending a final review and
verification of recommendations, with the final review in an
advanced stage of completion;
3. The special mining licence ("SML") application for the Mbeya
coal mine has been processed in its entirety and is now awaiting
final approval, pending environmental certification;
4. Engagement with the Ministry of Energy and Minerals ("MEM")
on the latest developments in relation to possible further changes
in mining policies and the Mining Act has reconfirmed that the
Company's operations are not affected by the current debate on
mining policies and the Mining Act.
Louis Coetzee, CEO of Kibo Mining, said: "Over the past two
weeks we have seen strong and committed engagement from all the
Tanzanian stakeholders towards moving the MCPP development process
forward and the progress meetings on 12 and 13 June underscored
this. From these meetings we have also developed a far better
appreciation of the reasons for the perceived slow processing of
the SML application and environmental certification. It is evident
that the relevant departments concerned with the processing of
these applications have taken a very diligent and pro-active
approach given the integrated nature of the MCPP. This approach,
albeit somewhat slower, not only avoided unnecessary and lengthy
delays but also brought about significant cost savings for the
Company. Both processes are now very near completion and pending
finalization of the last few actions, will be concluded
shortly.
We have also had very open and frank discussion with the MEM on
the ongoing public discourse in relation to possible further policy
and legislative changes concerning the mining industry and we are
happy to confirm that our official position in this regard remains
unchanged and we believe that the proposed changes and adjustments
will in general contribute to a stronger and very robust mining
industry in Tanzania going forward."
Enquiries
Kibo Mining plc +27 (0) 83 2606126
Louis Coetzee
River Group +27 (0) 83 4408365
Andreas Lianos
Beaufort Securities Limited +44 (0) 207 382 8300
Jon Belliss
RFC Ambrian Limited +61 8 9480 2500
Andrew Thomson
Bell Pottinger +44 (0) 203 772 2500
Liz Morley
Molly Stewart
Kibo Mining - Notes to editors
Kibo Mining is listed on the AIM market in London and the AltX
in Johannesburg. Kibo Mining is focused on exploration and
development of mineral projects in Tanzania, and controls a large
mineral rights portfolio in Tanzania. 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 Mbeya, which has a
significant NI 43-101compliant defined resource, and is developing
a 250-350 MW mouth-of-mine thermal power station, the Mbeya Coal to
Power Project ("MCPP"), previously called the Rukwa Coal to Power
Project ("RCPP"), with an established management team that includes
ABSA / Barclays as Financial Advisor. Kibo has completed a Coal
Mining Definitive Feasibility Study and a Power Pre- Feasibility
Study for the Mbeya project and has recently announced the
completion of an Integrated Bankable Feasibility Study report for
the project. On 25 August 2016, Kibo signed an Agreement with China
based EPC contractor SEPCO III granting it the right to become the
sole bidder for the EPC contract to build the power plant component
of the MCPP in exchange for SEPCO III refunding 50% of the
development costs incurred by Kibo to date on the project. Kibo has
already received the first tranche of this funding in the amount of
US$1.8 million on the 5th September 2016 and signed an EPC contract
with SEPCO III on the 19th December 2016.
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'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. Kibo Mining 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 recognizes the potential to enhance the quality
of life and opportunity for Tanzanian citizens through careful
development of its projects.
Updates on the Kibo Mining's activities are regularly posted on
its website www.kibomining.com.
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
Johannesburg
14 June 2017
Corporate and Designated Adviser
River Group
This information is provided by RNS
The company news service from the London Stock Exchange
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