Kibo publishes Mbeya coal to power project description and timeline
March 14, 2016
Tanzania focused mineral exploration and development company, Kibo Mining, has published an interactive process description and timeline for the Mbeya coal to power project (MCPP).
According to the company, the interactive process description and timeline, details and clarifies all work streams critical to the project, and should be used as a reference point for future updates provided by the company. In this regard, Kibo indicated it is important to note the following:
- Key milestones i.e. ‘development ready’, ‘financial close ready’, ‘construction ready’ and ‘production ready, represent the most critical progressive deliverables in the MCPP development process.
- The due date for ‘financial close ready’ has been adjusted in the above referred timeline. It is now expected that the MCPP will be financial close ready (ready to commence with the process of financial close) by the end of 2Q16. This adjustment means that financial close will now commence slightly later than previously announced. The slight delay does not impact on the overall timeline, as reflected in the due date for the next critical milestone, which remains the same as before. Both the mining and power definitive feasibility studies (MDFS and PDFS) are still on schedule, with the PDFS still expected at the end of Q1 and the MDFS shortly thereafter, subject to the timely receipt of the various government permits/licenses relevant to the MDFS. The adjustment in the timeline was caused by:
- The eleven-month delay in receiving funds from the February 2015 Hume placing. This prevented Kibo from commissioning all the required feasibility work streams in parallel due to cash flow constraints, resulting in a slight lag on some of the work that has since been corrected subsequent to securing the latest funding arrangement with Sanderson.
- Alignment with the various governmental approvals and permitting processes, which constitutes a significant amount of the current and upcoming activities of the feasibility studies. A number of feasibility study activities are dependent on government approvals and/or permitting and can only be completed upon receiving the relevant approval/license/permit.
- The integrated bankable feasibility study (IBFS) for the MCPP, which is the key deliverable to reach financial close ready status, is now, for the reasons mentioned under point 2, also expected during the latter part of 2Q16.
- The process description and timeline is an interactive presentation with clear navigation instructions, which will allow the reader to obtain additional information and clarification in respect of each of the different elements of the high level MCPP development process.