JOHANNESBURG (miningweekly.com) – Marking a key step in the advancement of the flagship project to development stage, Aim-listed Edenville Energy has confirmed that the Tanzanian Ministry of Energy and Minerals (MEM) and power generation, transmission and distribution body Tanesco has started the review process of the Rukwa power plant’s feasibility study.

The Rukwa power plant formed part of the larger Rukwa coal-to-power project, near Sumbawanga, south-western Tanzania, which was already known to host 171-million tons of measured and indicated coal, sufficient to support a 120 MW power station over the life of the project.

The feasibility review process would see the State reviewing and assessing proposed power generation projects that satisfied commercial and regulatory requirements. 

Edenville said in a statement on Wednesday that it was “most encouraged” that the power plant feasibility had been positively received and was in the review stage with the MEM and Tanesco. 

“This will enable the company to advance negotiations relating to power purchase agreement tariffs and plan the integration of Edenville's power plant into Tanzania's transmission and distribution infrastructure programme,” it stated.

The agreement of base tariff rates was expected to better define capital and operating expenditure requirements, allowing accurate modelling by engineering, procurement and construction (EPC) groups as part of the formal tender process.

Edenville CEO Rufus Short said he now expected the project to make significant progress in three key areas: the MEM and Tanesco review of the power plant feasibility study, the submission of the mining licence application and discussions with EPC partners. 

“We're moving forward on these fronts in parallel, each allowing better definition of the project's economic and technical parameters, taking us closer to the point of a formal relationship with an EPC partner.

“I am very encouraged by the recent discussions we had with the MEM, which underlined the absolute necessity of coal-fired power generation in Tanzania and I am confident we will continue to receive valuable input and support from the Tanzanian authorities,” he commented.