Kibo, Mbeya Cement sign strategic collaboration deal
JSE-LISTED Kibo Mining has signed a memorandum of understanding with Mbeya Cement Company, to develop a strategic regional collaboration and reciprocal supply of materials agreement.
Over the past months the company and Mbeya Cement identified various areas in which they believe they can collaborate towards the socio-economic benefit of the Mbeya and Songwe regions as well as for their own commercial objectives.
After identifying the various areas of possible collaboration, Kibo and Mbeya Cement have committed their respective companies towards achieving these benefits by agreeing and signing a strategic memorandum of understanding.
The memorandum of understanding will guide and govern a process whereby the parties will use their reasonable commercial endeavours to procure definitive agreements that will ensure fairness both in respect of product pricing and specific quantities.
The signed agreement will also “make provision for market conditions to procure a fair commercial relationship in which all parties share in the risks and benefits of prevailing market conditions”.
Collaboration and commercial arrangements will be pursued through discussions with regional development partners including government agencies, non-governmental organisations, community stakeholders and the private sector.
The companies will discuss exclusive coal supply agreement in respect of coal produced from the Mbeya Coal Mine, to supply coal to Mbeya Cement.
Other points of discussion include collaboration or contract mining of limestone to meet lime requirements of both the Mbeya power station and Mbeya Cement.
Kibo is focused on exploration and development of mineral projects in Tanzania and controls a large mineral rights portfolio.
Louis Coetzee, CEO of Kibo Mining, said: “This memorandum of understanding constitutes our very first step towards implementation of the broader regional and local development objectives and our first commercial diversification opportunity.
“It also marks the first direct electricity supply agreement opportunity outside commitments within the PPA.
“Kibo is presently involved in various other similar negotiations towards establishing the Mbeya Coal to Power Project’s commercial role as a critically important regional socio-economic development catalyst.”