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Kibo Mining PLC (LON:KIBO) has signed a joint venture (jv) agreement with Mozambique energy company Termoeléctrica de Benga SA to participate in the potential development of the Benga Independent Power Project (BIPP).
Kibo’s CEO, Louis Coetzee, said: “This JV is expected to add considerable value to Kibo’s portfolio of late stage energy projects and aligns perfectly with our proactive investment strategy of becoming a significant regional power player“
The AIM-listed Africa focused energy and resource company said the jv agreement includes the right to construct and operate a 150-300MW coal-fired power station.
It added that Kibo and Termoeléctrica will hold initial participation interests in the unincorporated joint venture of 65% and 35% respectively.
The group said the Benga Power joint venture is another step in advancing Kibo’s strategy to position the company as a leading regional energy player.
It added that, subject to the successful outcomes of further and more detailed studies on the BIPP, the company envisages being able to develop the project in an expedited manner alongside its Mbeya Coal to Power Project in Tanzania and the recently acquired Mabesekwa Coal Independent Power Project in Botswana.
The firm said: “As the BIPP has similarities with the MCPP and Mabesekwa, it is envisaged that considerable benefits could be realised in any potential power station development, including economies of scale in equipment, execution and project finance.”
Kibo’s CEO, Louis Coetzee, said: “This JV is expected to add considerable value to Kibo’s portfolio of late stage energy projects and aligns perfectly with our proactive investment strategy of becoming a significant regional power player.“