Tanzania-focused Kibo Mining has decided to implement a diversified production strategy for the Mbeya coal mine.
Kibo said the strategy would see Mbeya Coal LTD develop its coal mine to produce coal for the Mbeya power plant as its primary client, with the domestic coal market as a secondary client.
The company said it had already engaged with the domestic market in this regard with very positive response so far.
Chief executive Louis Coetzee said: “Our decision to adopt a diversified production strategy for the Mbeya coal mine follows from the results of the definitive mining feasibility study, where we specifically investigated parallel commercial opportunities in addition to producing coal for the Mbeya power plant only, the ultimate results from the IBFS, as well as latest policy changes in Tanzania.
“An integrated consideration of all these aspects shows that a diversified production strategy is indeed feasible and has potential to significantly enhance the economics of the Mbeya coal mine and which could allow the mine to be put into production earlier than planned for the MCPP.”
At 9:39am: (LON:KIBO) Kibo Mining share price was -0.25p at 4.13p
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