Kibo Mining Upbeat on Mbeya Coal Mine as DFS Progresses

Posted on : Friday, 16th October 2015

Kibo Mining (LON:KIBO) has finished work on the first phase of its definitive mining study (DFS) for the coal mine at its integrated power project in Tanzania.

The work included a 820m diamond core drill programme to confirm slope angles of pit design, coal metallurgy to ensure to determine the power station design and data to upgrade the resource in the next phase of the DFS.

Louis Coetzee, Kibo Mining’s chief executive, said: “Understanding the context of this announcement as well as the RNS of 12 October is of critical importance.

“The MCPP [the project] is totally dependent on the reliability and sustainability of its fuel source i.e. the Mbeya coal mine.

“The results announced on 12 October not only confirmed that the mine is technically, operationally and financially robust, but that the MCPP power component has, as a direct result thereof, a solid foundation on which it can be developed.”

The thermal coal deposit at Rukwa has around 109mln tons of resources and the group is also developing a 250-350MW mouth-of-mine power station.

On 12 October, Kibo said it was particularly pleased that the NPV of the mine component was confirmed at between US$214mln and US$219mln,

The peak funding required to develop the mine is US$38.9 million, which the firm hopes to raise through 70% in debt and 30% in equity.