Tanzanian Government approves ESIA for Mbeya Coal to Power Project

By HSE East Africa | Monday Oct 30, 2017

The Tanzanian government has awarded dual-quoted Kibo Mining an Environmental and Social Impact Assessment (ESIA) certificate for the two components of its Mbeya project. Kibo Mining is a multi-asset resource, development and energy company focused on Tanzania.

“This is terrific news for Kibo Mining and brings us another step closer to construction," highlights Kibo Mining CEO, Louis Coetzee. "The endorsement of the Mbeya coal to power project (MCPP) as a consequence of the ESIA certification cannot be underestimated – this is probably the most important enabler for the successful and expeditious completion of the remaining development work on the MCPP.

"Furthermore, we have had several very productive meetings with the newly established Ministry of Energy over the past two weeks which confirmed our view that the Memorandum of Understanding (MOU) on the Power Purchase Agreement (PPA) is progressing well and that it will be finalized shortly. Once the MOU, and thereafter the final PPA, is signed we envisage being in production in 36 months, bringing light to homes and businesses in Tanzania and making a strategic contribution towards enabling the local economy and delivering cumulative long-term value to our shareholders,” maintains Coetzee.

The ESIAs are an integral element of the MCPP approval process and a further milestone in the development of this critical energy project in Tanzania. The ESIA application, submitted to the government in February 2017, is a 1,000 - page document setting out the developer’s technical, environmental and social assessment of the two components of the MCPP.

The application was subjected to thorough review by all relevant authorities and key stakeholders before granting of approval. The ESIA constitutes a key element of corporate social responsibility and ultimately, of a company’s licence to operate.

Located in South West Tanzania, the MCPP is developing a coal mine in tandem with a 300 MW ‘mine mouth’ power station, aiming to satisfy the acute need for power in the country. The project benefits from strong local regional and governmental support, who see it as a national priority playing a key role in the Mtwara development corridor. The project, which partners with SEPCO III, a large Chinese construction and engineering company that designs, builds and operates power plants, was recently awarded General Electric’s Innovative Project of The Year award.

Granting of the ESIA comes as a latest milestone in the MCPP’s development cycle. Kibo Mining has already successfully completed a power pre-feasibility study, a mining pre-feasibility study, a definitive power feasibility study, a definitive mining feasibility study, an independent integrated financial model and an integrated bankable feasibility study.

Source: Mining Review Africa

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