Saturday , February 24 2024

Kibo Mining cements relations with Mbeya Cement

Kibo Mining has signed a deal with Lafarge Tanzania subsidiary Mbeya Cement to develop regional collaboration and to allow for reciprocal supply of materials.

The contract includes discussions with regional development partners to consent to socioeconomic and related development programmes and projects in the Mbeya and Songwe regions.

The deal ushers in exclusive coal supply agreement between the Mbeya Coal Mine and Mbeya Cement – a limestone mining and supply agreement and a fly ash supply agreement.

In addition, the deal would also focus on a definitive electricity supply agreement, whereby the Mbeya Power Plant will electrify Mbeya Cement, as well as a definitive cement supply agreement for the construction of the Mbeya coal-to-power plant (MCPP).

Louis Coetzee, Chief Executive Officer of Kibo Mining said the agreement signals the company’s first step towards implementation of the broader MCPP regional and local development objectives.

“This is 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 power purchase agreement.”

Export ban weighs on Tanzania’s Acacia cash flow

Tanzania’s metallic mineral concentrates export ban has had a $US33 million negative impact on Acacia Mining’s cash flow for the first quarter.

The ban, a presidential directive to promote the local smelting of concentrates has resulted in Acacia’s gold sales for the quarter being 34 926 oz lower than production.

Acacia recently said $22-million in advanced payments for concentrate produced in January and February was currently being held up in the Dar es Salaam port and was awaiting export prior to the ban being announced.

“The advanced payments may need to be refunded during the second quarter if the export ban is not lifted. Our all-in-sustaining cost (AISC) was impacted on a unit cost basis at $934/oz, and had we sold all of the ounces produced, AISC for the quarter would have been approximately $852/oz,” the company stated.

However, the company said it continued to operate its Bulyanhulu and Buzwagi mines as normal during the quarter, stockpiling concentrate and now having around 30 000 oz of gold in concentrate on hand.

Brad Gordon, Chief Executive Officer Acacia said at an operational level, the company had a very strong start to the year, with a year-on-year production increase of 15% to 219 670 oz delivered from its mines and the declaration of a 1.3-million-ounce maiden high-grade resource in Kenya.

North Mara delivered strong production of 96 468 oz, with a significant step-up at Buzwagi to 59 856 oz in the quarter while, as expected, Bulyanhulu had a slower start to the year with production of 63 346 oz.

Gold sales amounted to 184 744 oz, in line with the first quarter of 2016.

The company still managed to generate earnings before interest, taxes, depreciation and amortisation of $82-million, a 25% year-on-year increase.

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