Power JV in Mozambique Delivers Further on Strategy to Develop Regional Energy Group
06 June 2018
Kibo Mining Plc (AIM: KIBO; AltX: KBO), the multi-asset Africa focused energy and resource company, is pleased to announce that it has signed a Joint Venture Agreement (the ‘Benga Power Joint Venture’ or ‘JV’) with Mozambique energy company Termoeléctrica de Benga S.A. (‘Termoeléctrica’) to participate in the further assessment and potential development of the Benga Independent Power Project (‘BIPP’), including the right to construct and operate a 150-300MW coal fired power station. Kibo and Termoeléctrica shall hold initial Participation Interests in the unincorporated joint venture of 65% and 35% respectively.
The Benga Power Joint Venture is another step in advancing Kibo’s strategy to position the Company as a leading regional energy player. Subject to the successful outcomes of further and more detailed studies on the BIPP, the Company envisages being able to develop the BIPP in an expedited manner alongside its Mbeya Coal to Power Project (‘MCPP’) in Tanzania and the recently acquired Mabesekwa Coal Independent Power Project (‘Mabesekwa’) in Botswana. The Benga Power Joint Venture shall utilise Kibo’s experience in the advancement and development of power projects in the East African region and its strategic relationships with international development partners such as Sepco III and General Electric. As the BIPP has similarities with the MCPP and Mabesekwa, it is envisaged that considerable benefits could be realised in any potential power station development, including economies of scale in equipment, execution and project finance.