Rukwa Coal, a unit of Kibo Mining, has secured three new prospecting licenses (PLs) next to its existing PL block in southern Tanzania.
The PL block comprises the 109 million tons Mbeya Coal Mineral Resource, which supports the company’s Mbeya coal to power project (MCPP).
Recently, Kibo Mining said it is in the final stages of signing memorandum of understanding with Tanzania Electric Supply Company for the power purchase agreement for the MCPP, which is nearing completion of bankable feasibility study (BFS).
The three new licenses PL 10744/2015, PL 10742/2015 and 10743/2015 are located immediately north, south and east respectively of MCCP.
Kibo Mining expects the licenses to improve the BFS and subsequent development of the project besides significantly increasing exploration potential in the long-term.
Additionally, Kibo Mining will use the licenses to test for extensions to the Mbeya coal mineral resource or discover additional satellite coal deposits. The company will also test the existing deposit’s 48km strike.
Kibo Mining CEO Louis Coetzee said: “The addition of these prospecting licences to the company’s Mbeya portfolio completes an important and very strategic consolidation of the ground immediately adjacent to its Mbeya Coal Resource.
“This is of significant strategic importance as it secures the long-term fuel supply to the power station, provides confidence that the power plant can ultimately be expanded to 1,000MW and allays any fears from long term investors about possible instability in the long-term fuel prices, at which the power station will be able to procure fuel for the power plant.”