Kibo to split Tanzania licence in seven


Kibo to split Tanzania licence in seven

Published Date: 2019-07-10 | Source: Stephen Gunnion | Author: Stephen Gunnion

Kibo to split Tanzania licence in seven

The energy company says the change in approach to its application has provided further clarity on its coal to power project in that country.

Tanzania's government has altered Kibo Energy's application for a mining licence for its Mbeya Coal to Power Project (MCPP) to expedite the process.

The country's Mining Commission recommended Mbeya Coal's application for a Special Mining Licence (SML) for approval last September. However, because the licence required cabinet approval, the commission and Kibo agreed that on technical and procedural grounds converting the SML application into seven separate mining licence applications would be more efficient and effective under the country's mining laws. Ordinary mining licences only need ministerial approval. Seven licences are required as each one only covers an area equal to 10 square kilometres, while the SML covers 70 Km2. The SML runs for the life of the mining asset, while the mining licence is valid for 10 years, renewable until depletion of the mineral deposit.

In March, Kibo said the Mbeya project had been fully developed up to bankable feasibility stage, with a potential generating capacity of 1000 megawatts. It said multiple opportunities existed for the project including three distinct markets: utility, export and private off-take. An undersupply of power in Tanzania and the Southern Africa region meant there was urgent demand for electricity. It said it was well positioned to help Tanzania meet its target to deliver about 880 megawatts for the export market between 2020 and 2040. The Tanzania Electric Supply Company (TANESCO) is currently implementing interconnections through Zambia, Tanzania and Kenya to enable power trade within the Eastern African Power Pool and Southern African Power Pool member countries. Kibo said it was also discussing potential energy supply opportunities to the domestic market with TANESCO.

Kibo switched its focus from mining to Africa's energy deficit last year and has a number of projects at various stages of development in Botswana, Mozambique and Tanzania. It also bought a 60% stake in UK-registered MAST Energy Developments last year.

It shares closed 7.4% lower at 25c in thin trade yesterday.

Similar Stories