Kibo, Mbeya Ce­ment sign strate­gic col­lab­o­ra­tion deal

The New Age (Gauteng) - - BUSINESS - THELMA NGOMA thel­man@the­newage.co.za

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.”

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