Kibo Mining, a company listed on the London and Johannesburg stock exchanges, has completed preparations for a partnership with Benga thermoelectric company, Termoeléctrica de Benga for an independent power generation project in the Mozambican central province of Tete, according to a statement released on Wednesday.
The agreement reached between the two companies includes the construction and operation of a coal-fired power plant with a power output of 150-300 megawatts, a project similar to the two in which Kibo Mining is involved in Tanzania and Botswana.
With the completion of the preparations for the partnership, the economic feasibility study of the Benga project has begun, which includes a pre-study, a definitive study and an environmental impact study, as well as several economic evaluations, including a financial model.
The statement also noted that negotiations have begun on the purchase of coal as well as the sale of the power produced by the future Benga thermal power plant.
Under the partnership agreement to set up Benga Power, Kibo Mining and Termoeléctrica will each have initial holdings of 65% and 35%, respectively, according to a statement released earlier this month. (macauhub)