Kibo Mining PLC, Africa-focused energy and resource company held further talks with the Tanzanian Ministry for Energy and Tanzania Electric Supply Company earlier this week.
Kibo said it made “significant progress” towards the expedited completion of the power purchase agreement process for the Mbeya Coal to Power project.
The PPA – which is essentially the Tanzanian government and TANESCO agreeing to buy the power in advance – is needed for Kibo to complete the financing for the project.
Once that is in hand, the AIM-listed firm believes it can get the MCPP into production within 36 months.
Kibo told investors that both the TANESCO and MoE demonstrated a “clear strategy” to conclude the PPA process promptly and reassured investors that the PPA is on track to be completed during the current quarter.
In order to meet that target, the Tanzanian government has asked for a couple of changes to the Memorandum of Association.
Kibo said the changes should streamline the whole process and both the MoE and TANESCO have made “firm commitments” to sign the MoU by January End.
“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 honour its commitment to meet the deadlines and deliverables agreed upon during Monday’s meeting,” said chief executive Louis Coetzee.
“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.”