29th Jul 2014 09:52
LONDON (Alliance News) - Kibo Mining PLC Tuesday said it has hired Minxcon Projects to carry out a Definitive Mining Feasibility Study on the Rukwa Coal to Power Project in Tanzania.
The integrated feasibility study will cover the development of both the coal mine and the co-located thermal power plant at the site, the Tanzania-focused miner said.
Stage 1 of the study, which will start immediately, is expected to be completed by November.
As part of the first stage of the study, the executive management team at the Rukwa project will settle the heads of terms for the power purchase, coal sale and grid connection agreements at the site, said Kibo.
Kibo also said it reached terms on a joint development partnership for Rukwa over the past month, but will delay signing of the agreement until the Stage 1 is completed.
"With the official commencement of the integrated RCPP feasibility study covering both the mine and the power station, the project is now poised to rapidly accelerate," said Kibo Mining Chief Executive Louis Coetzee.
"Kibo remains focused on finalising a partnership agreement to advance development of the project and the commencement of the DMFS will generate significant forward momentum in the coming months," Coetzee added.
Kibo shares were trading 4.6% higher at 1.7 pence Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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