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Kibo’s Louis Coetzee updates shareholders on recent progress across portfolio of energy projects

Kibo has a route to near-term cash flow, and several larger longer-term projects designed to meet Africa's increasing energy needs
Louis Coetzee with Chinese backers

Kibo’s Louis Coetzee updates shareholders on recent progress across a portfolio of energy projects

In an open letter to shareholders, Louis Coetzee, the chief executive of Kibo Energy PLC (LON:KIBO), has set out the company’s position as one purely focussed on energy going into 2019.

WATCH: Kibo Mining beds down transformation into energy company with Benga project

Coetzee refers to a “multi-project portfolio,” including “three major and equally exciting African energy projects, and a UK flexible energy project” which could generate near-term revenue.

“In 2018, through strategic acquisitions and divestments, we successfully repositioned Kibo as a purely energy-focused company, and our projects are now positioned to be critically important in the effort to provide power to more of Africa,” he said.

In April 2018, Kibo acquired an 85% interest in the Mabesekwa Coal Independent Power Project in Botswana, which is currently the subject of a scoping study.

“The year ahead will see us focusing on fast-tracking the remaining technical work to complete an integrated bankable feasibility study for Mabesekwa,” Coetzee continued.

“We will also dedicate priority time and attention to investigating new, very exciting commercial opportunities for the Mabesekwa project that were presented to Kibo during December 2018.”

In June 2018, Kibo acquired a 65% interest in the Benga Independent Power Project ('Benga') in Mozambique, which includes a 150-300MW coal-fired power station.

“This is being developed with our joint venture partner, Termoelectrica de Mozambique de Benga S.A., and is advancing according to plan,” Coetzee said.

“A full feasibility study designed to confirm its commercial and operational viability is progressing well ahead of schedule, and discussions regarding a Power Purchase Agreement with prospective off-takers continue to advance. Notably, and most recently, we announced the renewal of an MOU with Mozambican state-owned electric utility, Electricidade de Mocambique, to advance the financing, construction and operation of this project.”

Meanwhile, work on the MCPP project continues.

“We are hopeful that we can now advance the project in a timely manner to hit key value trigger points, such as agreement of the power purchase agreement, during 2019 leading to the commissioning of a 300MW mouth-of-mine thermal power station.”

In the longer term, this could potentially increase to 1,000MW,” Coetzee added.

“Later in 2018, we acquired a 60% interest in MAST Energy Developments Limited, a private UK registered company. The strategy behind this acquisition was to generate near-term revenues for the company. Towards the end of 2018, we moved one step closer to achieving this, as MED secured an exclusive option to acquire three peaking power sites totalling 31.3MW, which have the potential to lead to revenue generation for Kibo in the latter part of 2019.”

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