[miningmx.com] – THE net present value of Kibo Mining’s Mbeya Coal to Power Project (MCPP) had improved to between $211m to $244m following completion of a prefeasibility study into the project, the company said in an announcement.
The MCPP envisages mining coal from the Mbeya mine in Tanzania in order to supply a $640m to $760m, 300MW power station.
Tanzania has available capacity of between 700MW and 800MW of which only 60% is considered to be reliable. Power demand is expected to grow to over 2,000MW by 2020, according to estimates.
The all-in cost margin of the project also improved from a range of 38% to 45% to a higher range of 49% to 62%. “This is significantly above the 25% level which is considered ‘healthy’ for this type of project,” said Louis Coetzee, CEO of Kibo Mining.
