21st Aug 2014 09:31
LONDON (Alliance News) - Kibo Mining PLC, which focuses on exploration and development of mineral projects in Tanzania, Thursday said the first phase of the first stage of the Rukwa coal-to-power project definitive mining feasibility study (DFS) is fully underway, with initial benchmarks met and discussions on power coal and connection agreements progressing.
In a statement, Kibo said the initial focus of the DFS was to test the key benchmark assumptions that will determine the economic viability of the Rukwa coal mine, as a long-term reliable coal supplier to the planned 300MW mine mouth Rukwa power station.
Kibo said that five benchmark assumptions have been subjected to a first pass assessment and delivered positive results, which it said justifies further definitive feasibility work.
"We are pleased with the positive progress and outcomes on the Rukwa DFS to date. It is important to note that the...results represent the findings from early assessments. The early DFS outcomes, referred to above, are also providing valuable support to the discussions on the finalization of the heads of terms for the power purchase agreement, grid connection agreement and coal sale agreement," Chief Executive Louis Coetzee said in a statement.
"These initial results bode well for a successful outcome from the DFS, and we are confident of continued positive results as the studies continue," Coetzee added.
Kibo shares were Thursday quoted down 1.8% at 1.40 pence.
Kibo said the five benchmark assumptions were:
"Excellent potential to mine the Rukwa deposit successfully and economically, based on current coal quantity and quality;
Suitable calorific values to match the fuel requirements for the planned Rukwa power plant;
Acceptable ash and volatile matter content;
Early principle decision that it will not be necessary to subject the coal feed to the Rukwa Power Plant to a washing process. (A final decision in this regard will follow upon completion of advanced feasibility work); and
Sufficient coal in the current mineral resource to sustain the Rukwa power plant for a period of up to 40 years."
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Kibo Energy