25 May 2012 – Mzuri Coal, a wholly owned subsidiary of Kibo Mining, has signed a memorandum of understanding (MoU) with a global Asian conglomerate for a Tanzanian mine mouth power station related to the company’s Rukwa project.

The MoU will see the companies undertake negotiations with a view to definitive agreements providing for the development of a mine and a 250 MW to 350 MW mine mouth coal fired power station near Mbeya in Tanzania as soon as practicable. If the development agreement is concluded and implemented, Mzuri will provide the Asian conglomerate with all available technical data and expertise to enable that group to conduct a comprehensive feasibility study on the development of a Rukwa power project. If found feasible, Mzuri would develop a thermal coal mine and enter into a long term off-take agreement with the Asian group to supply the power project with coal sufficient for its requirements.

The Asian group would undertake the technical, financial and commercial feasibility studies in respect of the Rukwa power project. It would procure all required approvals and permits for the construction, commissioning and operation, design, build and operation of the mine mouth coal fired power plant. This would include procurement of an Independent Power Producer (IPP) license from the Electricity and Water Utility Regulatory Agency of Tanzania (EWURA) and a Power Purchase Agreement (PPA) from the Tanzanian National Electricity Supply Company (Tanesco).