Feasibility study confirms economic viability of Rukwa coal mine in Tanzania

9 September 2014 (Last Updated September 9th, 2014 18:30)

Kibo Mining has completed the definitive mining feasibility study (DMFS) at its Rukwa coal mine project in Tanzania, which confirmed that the mine is technically feasible and economically viable to source fuel for a 300MW mine-mouth coal-fired Rukwa power station.

Kibo Mining has completed the definitive mining feasibility study (DMFS) at its Rukwa coal mine project in Tanzania, which confirmed that the mine is technically feasible and economically viable to source fuel for a 300MW mine-mouth coal-fired Rukwa power station.

The study also shows that the deposit can be mined as an open cast mine for around 27 years at an indicative direct mining cost range of $1 to $2 per tonne of coal, and an indicative plant cost of $1 to $1.5 per tonne.

Based on the initial pit optimisation, the mine is expected to be 9,050m along strike, 490m wide and 100m deep, with mineable resources of 60 million tonnes (Mt) of coal.

"The progress made…confirms the robust technical and economic fundamentals of the project and its suitability to support a 300MW power station for up to 40 years."

However, the Rukwa power station requires only 28.8Mt of coal for over 20 years, which accounts to only 48% of the total mineable resource.

The remaining 52% of the mineable resource and 35km strike length of the Rukwa coal deposit suggests there is enough fuel to generate an additional 600MW capacity for 30 to 40 years.

Kibo Mining CEO Louis Coetzee said: "We are delighted with the latest results of the on-going work at Rukwa and the rapid progress the company is making at the moment.

"The progress made with phase one, stage one of the Rukwa DMFS confirms the robust technical and economic fundamentals of the project and its suitability to support a 300MW power station for up to 40 years."

The Rukwa coal project holds two prospecting licences, two prospecting licence offers and five prospecting licence applications located in southwestern Tanzania.

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