Mbeya mining study findings announced

Kibo Mining has announced the findings from the Phase 2, Stage 1, mining prefeasibility study for the Mbeya (formerly Rukwa) coal-to-power project (MCPP) in Tanzania, with key highlights including:

• A selected mining method: modified terrace mining method, with overburden removal by means of a free dig (truck and shovel) method, and coal seam and inter burden mining by means of mechanised continuous surface mining method.
• Limited processing in the form of destoning of product required.
• River diversion as identified in the concept study proven unnecessary in prefeasibility pit optimisation.
• Four alternative mining options for the selected mining method identified, with the project financially feasible for all of the options investigated.
• Annual estimated coal sale revenues of between US$48.4 million and US$48.6 million.
• All-in cost margin ranges from 49% to 62%. Applying the aforementioned all-in cost margin, Kibo interprets that an annual profit margin of between US$24 million to $27 million will be generated.
• Applying a real discount rate of 5.5% the best estimated Net Present Value ranges from US$211 million to US$244 million.
• Internal rate of return (IRR) ranging between 33.6% and 53.9%.
• Return on investment (ROI) ranging between 595% and 903%.
• Payback period ranging between 2.6 - 3.65 years.

“We are delighted with the results from the mining prefeasibility study,” said Louis Coetzee, Kibo’s CEO. “Figures from the mining prefeasibility study report confirm that the Mbeya coal mine (as the mining component of the MCPP is a very robust project in every aspect.”

Written by Jonathan Rowland.

Read the article online at: https://www.worldcoal.com/exploration-and-development/12082015/mbeya-mining-prefeasibility-study-findings-announced-2722/