Kibo Mining and Termoeléctrica de Benga have signed a joint venture (JV) agreement for the Benga Independent Power Project (BIPP), a proposed coal-fired power plant in Mozambique with a capacity range of 150-300MW.
Image: A power plant. Photo courtesy of Kiril Havezov/Freeimages.com
The JV agreement has been signed for further assessment and potential development of the power plant apart, including the rights for its construction and operation.
As per the terms, Kibo Mining, a Tanzania-based minerals exploration and development company will hold a stake of 65% in the JV while Termoeléctrica, a Mozambique energy company will own the remaining stake of 35%.
Kibo Mining, in a statement, said: “The Benga Power Joint Venture is another step in advancing Kibo’s strategy to position the Company as a leading regional energy player.
“Subject to the successful outcomes of further and more detailed studies on the BIPP, the Company envisages being able to develop the BIPP in an expedited manner alongside its Mbeya Coal to Power Project (‘MCPP’) in Tanzania and the recently acquired Mabesekwa Coal Independent Power Project (‘Mabesekwa’) in Botswana.”
The coal mining firm further said that the Benga Power JV will use its experience of advancing and developing power plants in the East African region apart from its strategic relationships with Sepco III and General Electric and other international development partners.
Last month, Kibo Mining said that it had signed the final lot of engineering, procurement and construction contract for the MCPP project with China-based Sepco III. The contract is for the construction of a transmission line that will transport electricity from the 300MW Mbeya Power Plant in the Songwe District to the Mbeya sub-station owned by state utility Tanzania Electric Supply Company (TANESCO).
Kibo Mining had recently signed a Memorandum of Understanding (MOU) with the Tanzanian utility to sell power generated from MCPP.
In neighboring Botswana, Kibo Mining had completed the acquisition of an 85% stake in the Mabesekwa coal power plant in April through an all-share deal with Sechaba Natural Resources.