Kibo energised for 2019


Kibo energised for 2019

Published Date: 2019-01-08 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Kibo energised for 2019

The group, which has switched its focus from mining to Africa's energy deficit, expects to start generating revenue by the end of the year.

Kibo Energy aims to start generating revenue by the end of the year following its acquisition of a 60% stake in MAST Energy Developments (MED) last year. MED is a private UK-registered company targeting the development and operation of flexible power plants aimed at the reserve power generation market. Kibo made the acquisition as part of its switch from mining to focus purely on energy projects. That saw it divest of its resource-based gold assets in northern Tanzania and acquire stakes in energy projects in Botswana and Mozambique.

In a letter to shareholders, Kibo said MED had since secured an exclusive option to acquire three peaking power sites totalling 31.3MW, which are expected to generate revenue for the group by the end of the year.

Meanwhile, it's completing an integrated bankable feasibility study on the Mabesekwa Coal Independent Power Project in Botswana, which it bought an 85% stake in. A full feasibility study to confirm the commercial and operational viability of its 65%-owned Benga Independent Power Project in Mozambique is progressing well ahead of schedule. The project includes a 150-300MW coal-fired power station and is being developed with joint-venture partner Termoelectrica de Mozambique de Benga.

Kibo said its Mbeya Coal to Power Project in Tanzania continued to represent one of the most advanced and strategically important socio-economic development projects in the country, positioned to alleviate an energy deficit. The power purchase agreement (PPA) and the financial close of the project were delayed last year, however, due to the introduction of new standardised project procurement processes by the government. It said it was hopeful that the project could now proceed, with the agreement of the PPA this year and the commissioning of a 300MW mouth-of-mine thermal power station. In the longer term, it said this could potentially increase to 1,000MW.

Kibo's shares closed unchanged on the JSE at 48c. They rose 11.7% in London trade to 2.15p.

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