Positive news has been released from Tanzania, as Kibo Mining reveals initial study of the Rukwa coal project shows capital expenditure will be lower than expected.
The reduction in expenditure is due to changes in Kibo’s mining plan.
The company has not provided total expenditure figures.
The project comprises a plan to build a 300 MW thermal power plant and mine in Tanzania, based on the discovery of a thermal coal deposit with 109.39 million t of inferred and indicated resources.
According to the Wall Street Journal, The miner, which focuses on gold, nickel, coal and uranium projects in Tanzania, said a preliminary investigation showed it could employ continuous surface mining instead of traditional coal seam mining, a change in plan that would bring about significant reductions in direct mining costs.
Kibo said its initial study showed the project would have attractive rates of investment over the life of the mine with a short capital-pay back period. Direct mining costs are estimated at between US$ 1.60 – 1.90/t.
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/09102014/kibo-mining-announces-change-in-mine-plan-1401/