Kibo signs MOU with Mbeya Cement
Kibo Mining, the Tanzania-focused mineral exploration and development company, has announced that it has signed a strategic 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 have identified areas in which they can collaborate towards the socio-economic benefit of the Mbeya and Songwe regions as well as for their own commercial objectives.
The MOU will guide and govern a process whereby the parties will use their commercial endeavours to procure definitive agreements that will ensure fairness in respect of product pricing and specific quantities, and 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.
“This MOU constitutes our very first step towards implementation of the broader MCPP regional and local development objectives; our first commercial diversification opportunity in as far as coal supply agreements are concerned, other than to the Mbeya Power Plant. It also marks the first direct electricity supply agreement opportunity outside commitments within the PPA,” says Louis Coetzee, Kibo Mining CEO.
Kibo is involved in various other similar negotiations towards establishing the MCPP’s commercial role as a critically important regional socio-economic development catalyst.
The MCPP fulfils a dual role as strategic national energy supplier and as a pivotal socio-economic development agent on the other.
“We are very excited with the partnership that we have with the Kibo and this gives us mutual benefits in leveraging our key strengths while supporting the government and communities at large,” says Ilse Boshoff, Lafarge Tanzania CEO.