Rukwa Coal gets three new prospecting licences in Tanzania

13 January 2016 (Last Updated January 13th, 2016 18:30)

Kibo Mining's wholly owned subsidiary Rukwa Coal has obtained three new prospecting licences (PLs), which will allow the company to extend exploration to tenements near its existing PL block in southern Tanzania.

Kibo Mining's wholly owned subsidiary Rukwa Coal has obtained three new prospecting licences (PLs), which will allow the company to extend exploration to tenements near its existing PL block in southern Tanzania.

The PL block contains the 109 million tonnes Mbeya Coal Mineral Resource, which underpins the company's Mbeya Coal to Power Project (MCPP).

At present, MCCP is in the final stages of a bankable feasibility study (BFS).

The three new licences PL 10744/2015, PL 10742/2015 and 10743/2015 are located immediately north, south and east respectively of MCCP.

"This is of significant strategic importance as it secures the long-term fuel supply to the power station."

They are expected to improve the BFS and subsequent development of the project, while providing the company with increased exploration potential in the long-term.

Using these licences, Rukwa Coal will be able to test for extensions to MCCP or discover additional satellite coal deposits in addition to 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."

Kibo Mining has gold focused interests including Lake Victoria Goldfields and Morogoro projects and also holds the Haneti project, Pinewood (coal & uranium) project and the Morogoro (gold) project.