[miningmx.com] – KIBO Mining said the net present value (NPV) of its Mbeya Coal Power Project (MCPP), situated in Tanzania, was between $214m to $219m following completion of a financial optimisation study.
The NPV calculation was in respect of the coal project and excluded the power station build which Kibo Mining intended to produce 300MW at a total cost of up to $740m.
Tanzania has available capacity of between 700MW and 800MW of which only 60% is considered to be reliable. Power demand is expected to grow to over 2,000MW by 2020, according to estimates.
“This is a large-scale project which is now demonstrably lower risk. With the relatively low capital investment required, the Mbeya coal mine delivers a high project IRR and short payback period,” said Louis Coetzee, CEO of Kibo Mining.
