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Mbeya coal to power completes ESIA

Tanzania’s Mbeya coal to power project has officially completed all work for the Environmental and Social Impact Assessment (ESIA) and is now awaiting certification.

This was announced on Wednesday by mineral exploration and development Company, Kibo Mining.

Louis Coetzee, CEO of Kibo Mining, said: “Completion of all the ESIA work marks another major step forward in the development of the MCPP, which has now reached a very advanced stage of development and is continuously gaining in momentum.”

The mining firm explains that they hold a thermal coal deposit at Mbeya, which has a significant NI 43-101 compliant defined resource, which has led to the development of this 250-350MW mouth-of-mine thermal power station.

Mbeya coal to power plant

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.

In September last year, it was reported that the final development costs of the coal to power project, was granted a three-week extension due to the underestimation of the independent audit of the development costs incurred over several years.

The extension was granted for the determination of the final development amount still due by China-based contractor Sepco III, as part of a redefined agreement for the progression.

According to the Tanzanian-based mining firm, Kibo has since received the first tranche of this funding in the amount of $1.8 million on the 5 September 2016.

Ashley Theron
Ashley Theron-Ord is based in Cape Town, South Africa at Clarion Events-Africa. She is the Senior Content Producer across media brands including ESI Africa, Smart Energy International, Power Engineering International and Mining Review Africa.