- Kibo Energy said its strategy to develop two thermal coal power projects in Botswana and Mozambique, a UK focused flexible energy portfolio and an advanced coal to power project in Tanzania remained unchanged despite the sea of changes seen since the turn of the year.

The Benga Independent Power Project in Mozambique, in which the company held a 65% stake, was progressing rapidly amid plans to construct and operate a 150-300 MW coal-fired power station with feedstock provided by regional coal producers.

Both the coal supply agreement and the power purchase agreement for private offtake were well-advanced and we 'hope to finalise these during April 2019,' the company said.

The Mabesekwa Coal Independent Power Project in Botswana, in which the company held a 85% stake, was currently at feasibility stage, following the completion of a Mining Scoping Study, which highlighted a 30-year Life of Mine, and a Power Pre-Feasibility Study indicating maximum power capacity of 600 MW based on a coal delivery rate of 3.2 Mt p/a.

'We are currently awaiting our Mining Licence for the Mabesekwa Coal Mine and like Benga, Mabesekwa is on a clear development path with visible deliverables that we believe, when reached, will increase the inherent value of the project,' the company said.

Financial modelling at the 60% owned UK subsidiary, Mast Energy Development projected IRRs of 13-16% and NPVs of £16-19m for the initial assets, the company said. 'We're close to completing the acquisition of the first sites and due diligence on several more are nearing conclusion from which further site acquisitions will in all likelihood follow.'

But the outcome of the tender process at its 100% owned Mbeya Coal to Power Project in Tanzania was 'disappointing,' the company said.

The value of this asset, however, should not be written off given that the fundamentals remain the same and its strategic location close to 'potential private offtake partners and the export market provided many opportunities to commercialise the project, which we are actively pursuing,' the company added.

At 8:59am: [LON:KIBO] Kibo Mining share price was +0.03p at 0.78p

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