9th Oct 2014 08:17
LONDON (Alliance News) - Kibo Mining PLC, the exploration and development company focused on gold, nickel, coal and uranium projects in Tanzania, on Thursday said it has made an initial finance model for its wholly-owned Rukwa coal-to-power project based on results from its feasibility study, which is still ongoing.
The capital expenditure for the project is now thought to be lower than the company's initial estimates, and it is to have a short capital payback period. The company didn't release specific figures in relation to these projections.
The direct mining cost for the project will be between USD1.60 per tonne and USD1.90 per tonne, it said in a statement. Kibo are hoping to reduce these mining costs by investigating the potential of surface mining, such as an open pit, replacing coal seam mining, which uses blasting and drilling, which increases costs. Open pit mining is also expected to reduce the amount of ore that will require crushing.
"The initial robust economics of the Rukwa coal mine are better than expected and bode well for the remaining feasibility work. The results obtained from feasibility work done so far will now be subjected to further rigorous interrogation during the ensuing, more advanced, stages of the feasibility study," said Chief Executive Louis Coetzee.
Kibo shares were up 2.0% to 1.53 pence per share Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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