Multi-asset Africa-focused energy company, Kibo Energy, has announced that the Mbeya Coal Mine, which comprises the mining component of the Mbeya coal to Power Project (MCPP), has been recommended for a grant of a Special Mining License from the Mining Commission of Tanzania.
Kibo has also submitted the request to the Tanzania Electricity Supply Company (TANESCO) asking for further clarification on the impact/effect that the tender process for coal power projects may or may not have on its ongoing Power Purchase Agreement (PPA) negotiations with TANESCO in respect of the Company’s MCPP in the Songwe district in South Western Tanzania. Read more: Kibo Energy acquires 60% stake in UK firm
In the meantime, the Company has engaged in the tender process and has already obtained the relevant documentation for submission of the tender qualification as stipulated in the Invitation for Qualification.
Louis Coetzee, CEO of Kibo, commented: “Receipt of the Special Mining Licence will be a further box ticked in the MCPP’s development plan. Whilst timelines could be affected by TANESCO’s recent initiation of a tender process, the strong fundamentals of the project remain unaffected: the MCPP is a key energy project positioned to help alleviate Tanzania’s acute power deficit.
“With local, governmental and international support, we remain focused and confident on advancing the project through the very last steps of the planning and development phase to first power production. We believe we remain firmly on course to deliver the MCPP and our two other utility-scale projects in Botswana and Mozambique respectively.”