AMN - TANZANIA: Mbeya Coal to Power Project review completed

Kibo Mining, the Tanzania focused mineral exploration and development company, announces that the review of the Mbeya Coal to Power Project’s (MCPP) Power Definitive Feasibility Study (PDFS) has been completed.

Kibo Mining CEO Louis Coetzee says: “We are extremely pleased to have completed the PDFS on schedule and within budget. The PDFS constitutes the most important component of the MCPP and is the foundation for the MCPP’s entire business case. This milestone in the development of the MCPP is a critical achievement in advance of the financial close.

On May 4 Kibo Mining announced the results from the PDFS:

-          Primary base case recommended by the Power-PFS, that is circulating fluidized bed boiler technology, 300 MW configured as 2 x 150MW units, accepted as optimal selection for final design of the Mbeya Power Station

-          Prefeasibility Study annual production target of 1840 GWh confirmed

-          Annual average coal consumption confirmed at 1,497,432 tonnes/year, using ROM product from the co-located mine site and within mine design parameters

-          Total estimated project cost confirmed well below cost estimate stated in Power-Prefeasibility Study

-          Minor technical concerns identified during Power- Prefeasibility Study were all eliminated during the PDFS

-          Based on recently restated Mbeya coal resource, the PDFS includes provision for near-term expansion of the power station to at least 600 MW

-          Positive PDFS results will further improve the already strong financial feasibility figures of the MCPP

-          Receipt of final PDFS-report initiates final development phase of the MCPP financial model, required for the integrated MCPP bankable feasibility study.

Louis Coetzee says: "The PDFS is the cornerstone of the MCPP and the positive results confirm the very robust fundamentals of the MCPP. The mining and power prefeasibility studies provided us with early indications that the MCPP holds the promise of strong technical, operational and financial fundamentals and the PDFS has confirmed this. We are particularly keen to see to what extent the PDFS results will improve the financial fundamentals of the project, once the integrated financial model has been updated with the PDFS and Mining Definitive Feasibility Study results.

“The completion of this study is also a critical milestone in the MCPP development process. With the PDFS in place, the final development phase of the integrated bankable feasibility study will commence and the parallel work streams in the MCPP feasibility programme can now be completed.”

www.kibomining.com

News courtesy of International Mining