Kibo Mining (AIM:KIBO, JSE:KBO), a Tanzania focused mining company, recently signed a Memorandum of Understanding (MoU) with American corporation General Electric (NYSE:GE) for the development of the Mbeya Coal to Power Project (MCPP).
According to the MoU, GE will supply equipment, technology and services to the MCPP power plant.
In addition, GE will be exploring opportunities where it can assist Kibo in bringing the Project to a successful financial close.
Kibo and GE are currently in discussions to set out in detail the terms and conditions of their collaboration into a binding agreement, Kibo’s press release indicates.
Louis Coetzee, CEO of Kibo Mining, said: “We are extremely pleased that we have established this relationship with GE, one of the largest and technologically advanced companies in the World. We are looking forward to working with GE and benefitting from its expertise and reputation in the power sector.”
GE is an American multinational digital industrial conglomerate is headquartered in Boston and operating through a number of business divisions which includes power generation, oil & gas, aviation, healthcare, transportation and capital.
GE is involved in Tanzania’s power sector by working together with the Tanzania Electricity Power company (TANESCO) and a number of power producers including SONGAS, Symbion Power, Kioo Glass, Tanzania Tobacco Corporation to boost electricity generation in the country.
Mbeya Coal to Power Project
Kibo’s MCPP, located in south western Tanzania, has total coal resources of 121Mt (20.9Mt measured, 88.6Mt indicated, 11.3Mt inferred).
The company will develop a thermal power station with the capacity of 250–300MW in 2017–2019. Kibo expects the plant to produce coal and power from 2019 to 2047.