Name of the Project
Rukwa coal-to-power project (RCPP).

Location
Tanzania.

Client
Edenville Energy.

Project Description
A feasibility study completed on the project has indicated an economically sound project with a 30-year, 120 MW coal-fired power plant.

The project hosts 171-million tons of measured and indicated coal, sufficient to support the station over the life of the project.

A small-scale mine scenario to provide coal for local markets is being worked on after the granting of a mining licence and the recent ban on coal into Tanzania.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Independent power modelling consultancy Diamond Energy has completed a new financial model for Aim-listed Edenville Energy’s RCPP.

The new financial model builds on and validates the results and integrity of the financial model compiled from the results of the 2015 power plant feasibility study.

It has resulted in a 14% increase in the project’s pretax net present value to $252-million, from the previous estimate of $220-million, while the internal rate of return has improved to 23.4%, compared with 23.1% in the 2015 study.

Value
The capital expenditure to deliver a combined mine and 120 MW power plant is estimated at between $180-million and $200-million.

Duration
Not stated.

Latest Developments
Edenville Energy has appointed a consultant mining engineer to oversee the mining development and efficient operation of its RCPP.

The unnamed engineer has more than 20 years of experience in the resources industry, including ten years on the continent, and comes from a strong background of putting mines into production, as well as developing and operating mines and materials processing operations in Africa, Australia, Europe and the UK.

Work has subsequently started on mining equipment selection, recruitment of operations personnel and planning of mining development.

Edenville has also appointed a consultant coal-processing engineer to oversee the construction and operation of the wash plant, including the training of Tanzanians.

Meanwhile, the miner noted that it had further received letters of intent and expressions of interest from several parties that intend to buy coal from the operating mine on a long-term basis.

Edenville has noted that it is conservatively planning for firm orders resulting in initial sales in the region of 5 000 t/m to 8 000 t/m, with the ability to increase production.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Edenville Energy, tel +44 20 7653 9850 or email info@edenville-energy.com.