4th May 2016 07:05
LONDON (Alliance News) - Kibo Mining PLC Wednesday released the definitive feasibility study for the power element of its Mbeya project in Tanzania, showing the total cost of building the 300 megawatt power plant will be much lower than expected with the option of expanding the plant in the near term.
The Mbeya coal-to-power project is being developed in two stages, one focused on the mining element of the operation that will produce coal to feed into the second stage, a power plant that will generate electricity for the domestic market.
Kibo said it had finished the definitive study for the power element of the project in early April, but was still reviewing the study at the time.
On Wednesday, Kibo said the study has shown a 300 megawatt plant would be optimal for Mbeya, comprised of two 150 megawatt units using circulating fluidized bed boiler technology. That would be capable of generating 1,840 megawatts of power per year by consuming just under 1.5 million tonnes of coal from the Mbeya mine.
Kibo said the total estimated cost of the project is "well below" the estimates made in the pre-feasibility study.
Kibo recently updated its coal resource at Mbeya, and said the power plant could be expanded to 600 megawatts "in the near-term" as a result, which has been incorporated into the definitive study.
A separate definitive feasibility study is being carried out for the mining element of the project, which Kibo has previously said would come "slightly later" than the study concerning the power element of the project.
Once initiated, construction of Mbeya will take between 36 to 37 months, but Kibo will have to reach financial close beforehand. Kibo wants to reach financial close before the end of June, which is slightly later than originally envisaged.
By Joshua Warner; [email protected]; @JoshAlliance
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