THE Johannesburg- and London-listed power producer Kibo Energy says is has successfully renewed ahead of schedule the water rights granted in August last year for its flagship Mbeya Coal to Power Project in Tanzania.
This ensures that the MCPP Environmental Impact Assessment certification remains valid and maintains the right for its subsidiary Mbeya Power to use large quantities of water, a strategic commodity for the MCPP, specifically at its power station.
Louis Coetzee, CEO of the Africa-focused energy company, said the renewal of the water permits so soon after the recent approval and processing of seven mining rights for the project, further confirms his confidence in MCPP’s potential.
The seven mining rights granted last month, give the go-ahead for commercial mining activity which will fast-track the project.
The licences cover a 120.8 million tonnes NI 43-101 thermal coal resource for MCPP, one of Kibo’s four international power projects.
“A definitive feasibility study confirmed the economic viability of the mining project with an indicated IRR [internal rate of return] of 69.2%,” Kibo said in a previous note to shareholders.
In addition to MCPP, Kibo is currently simultaneously developing two similar coal-fuelled power projects to address the acute power deficit in Sub-Saharan Africa. They are the Mabesekwa coal independent power project in Botswana; and the Benga power plant project in Mozambique.
