According to Kibo Mining, the MOU is a precursor to the Power Purchase Agreement (PPA) with the state-owned electric utility, which is anticipated to be finalized by the end of the first quarter. The PPA will be subject to an approval from the Tanzanian Ministry of Energy.
Kibo Mining said that the PPA will help it move ahead with execution and completion of the final development phase of the MCPP, which includes construction and commissioning.
The mining company said: “The Company hopes to complete funding arrangements for the construction and commissioning of the MCPP during H2 2018, after which Kibo believes it can be in production in 36 months, i.e. first electricity into the grid.”
Kibo Mining has selected China-based SEPCO III to provide the engineering, procurement, and construction (EPC) part of the project.
In October 2017, Kibo Mining had secured an Environmental and Social Impact Assessment (ESIA) Certificate from the Tanzanian Government for both the Mbeya coal project and the 300MW Mbeya power generation project.
The MCPP project, located in the south west region of the country, will involve the development of a coal mine along with a mine-mouth power station with an objective to solve the acute energy deficiency and also to meet anticipated demand for power in the future in Tanzania.
Kibo Mining, on its website, stated that Tanzania, has less than 1,000MW of power generation out of the total 2,000MW it needs.
