17th Feb 2016 09:22
LONDON (Alliance News) - Kibo Mining PLC on Wednesday said the coal within the Mbeya coal-to-power project in Tanzania exceeds the standard technical requirements needed to feed the associated power plant.
The findings were made through a special analysis of metallurgical testwork at the site, and following the completion of those tests, Kibo can fully focus on finalising the administrative and commercial aspects of the definitive feasibility study for the project.
"The results from the metallurgical test work on the Mbeya coal resource, marks another major step forward in the development of the Mbeya coal-to-power project," said Louis Coetzee, chief executive of the company.
Kibo is progressing the project on two fronts, one focused on the mining aspect of the project and the other on the power plant element. The feasibility work carried out on the mining aspect to date has already shown "a very robust mining project" is possible, but the miner had not studied the specific metallurgical properties of the coal and whether it was suitable for the planned power plant.
On Wednesday, Kibo said the analysis of the coal has yielded positive results.
"The metallurgical test results received have proven that the Mbeya coal not only meets, but exceeds, the standard technical requirements of the power plant. With these latest test results the Mbeya coal resource has now passed all the technical and economic requirements to qualify as a suitable long term fuel source to the Mbeya power plant," said Coetzee.
"We can now focus all our attention and resources on concluding the remaining mostly administrative and commercial aspects of the Mbeya coal-to-power project definitive feasibility study," he added.
The studies carried out on the coal samples analysed the average relative density, inherent moisture, volatile matter, ash, calorific value, sulphur content, ash fusion temperature, abrasiveness and other characteristics of the coal.
"The results from the analyses were considered by several industry professionals and it was found that in all cases the metallurgical properties of the coal, met and or exceeded the quality standards for use in a fluidized bed power station. All the consulting experts concluded that the coal metallurgy and quality was suitable for use in a fluidized bed coal power station," said Kibo.
Kibo shares were down 1.2% to 4.20 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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