Mbeya signs cooperation agreement Kibo Mining

Tanzania-based Mbeya Cement Co, a LafargeHolcim subsidiary, has signed a cooperation agreement with coal development company Kibo Mining which covers a range of potential areas of collaboration including the supply of coal and flyash to Mbeya.

Kibo Mining holds a thermal coal deposit at Mbeya and is developing a 250-350MW mine mouth thermal power station, the Mbeya Coal to Power Project, previously called the Rukwa Coal to Power Project.

In a statement, Kibo Mining said that together with Mbeya Cement it has identified various areas in which the two parties can collaborate towards the socio-economic benefit of the Mbeya and Songwe regions, as well as for their own personal objectives. To this end, Kibo and Mbeya Cement have signed a Memorandum of Understanding with collaboration, commercial arrangements and agreements to be pursued in relation to:

• discussions with regional development partners including government agencies, NGOs, community stakeholders and the private sector regarding an optimal roadmap to give effect to policies in respect of regional socio-economic and related development programs and projects
• exclusive coal supply agreement for the Mbeya Coal Mine to supply coal to Mbeya Cement, subject to guaranteeing specified quality and quantity specifications from Mbeya Cement
• definitive supply or collaboration or contract mining or similar agreement in respect of limestone to meet lime requirements of both the Mbeya power station and Mbeya Cement
• definitive agreement to supply fly ash produced from the Mbeya Power Plant to Mbeya Cement
• definitive agreement to supply electricity to Mbeya Cement with electricity produced from the Mbeya Power Plant
• definitive supply agreement either directly with Mbeya Coal or with its contractors in respect of cement produced by Mbeya Cement for use in the construction of the Mbeya Coal Mine and Mbeya Power Plant.

“We are very excited with the partnership that we have with Kibo and this gives us mutual benefits in leveraging our key strengths, whilst supporting the government and communities as large,” said Ilse Boshoff, CEO of Lafarge Tanzania.