Edenville appoints EPC provider for coal-to-power project
JOHANNESBURG (miningweekly.com) – To progress its Rukwa coal-to-power project in south-west Tanzania, Aim-listed Edenville Energy has entered into a binding collaboration agreement with Runh Power Corporation.
The agreement marked the first stage in the progression towards a full engineering, procurement and construction (EPC) contract for the 173-million-ton mine and power generation plant.
"We are pleased to welcome Runh to the project. Over the course of the year, we had detailed discussions with several groups, all of which demonstrated expert capability to provide the EPC component for the project.
“Our selection of Runh allows the project to source the most appropriate and cost effective plant, while retaining the services of an EPC contractor with current and ongoing experience in East Africa,” Edenville CEO Rufus Short said.
He added that Runh’s experience of projects of a similar size and working with coal of similar quality to those at the Rukwa deposit brought valuable knowledge to Edenville.
Runh was a Chinese-based group with an international approach. “This increases the potential for a smooth progression through the project development.
“Additionally, I am convinced that Runh's experience of working alongside funding institutions can add value to the funding and development process. I am confident Runh will be able to deliver a successful EPC outcome for the project and Edenville,” he noted.
Edenville pointed out that it retained its 90% interest in the project. “We are now entering an exciting phase in the development timeline both at a project level and on the movement forward with the Tanzanian power generation policy,” Short said.
Edenville would develop the coal mining component of the project to work towards meeting the technical, financial and regulatory requirements necessary to allow the funding and development of the coal mine to supply the power plant.
It would also provide information on the estimated timeframe to complete specific requirements and tasks within Tanzania relating to the coal mining component of the project.
Meanwhile, Runh would provide EPC services to develop the power plant component of the project to a stage where funding could be sought for procurement and construction, as well as assist in the development of the project through the Tanzanian regulatory system, including the advancement to a power purchase agreement.
It would also assist Edenville in sourcing and securing appropriate funding for the project, which could include advice on and introductions to suitable financial institutions in China.
The agreement would run for an initial one-year period with an option to extend. At the end of a six-month period, the progress on the principal development goals would be reviewed.
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