Name of the Project
Imaloto independent power producer (IPP) coal-fired power plant project.

Location
The power plant will be located at the mine mouth of Lemur’s coal deposit, in Madagascar.

Client
Lemur Holdings, a subsidiary of Bushveld Minerals.

Project Description
The project involves the construction of an initial 60 MW IPP coal-fired power plant and an associated 138 kV, 200 km transmission line.

The power plant is expected to be fuelled by coal from Lemur’s coal mining permit area in Madagascar, which has a Joint Ore Reserves Committee-compliant resource of about 136-million tonnes of coal.

Potential Job Creation
The project will support the regional economy by creating 1 650 direct jobs, some of which have already been filled. However, the majority of jobs will start during the construction phase, which will start in the next year or two.

Value
Not stated.

Duration
The project is expected to be commissioned in 2021.

Latest Developments
The granting of a 30-year concession agreement during the second quarter of this year was a critical milestone for the Imaloto coal-fired independent power project (IPP), in Madagascar, aligning its development with that of government’s broader plans, Bushveld Minerals CEO Fortune Mojapelo has said.

An inception site visit for social- and environmental-impact assessment purposes has also been completed. Overall, the impact assessment work is expected to be completed in the fourth quarter.

Further, a power purchase agreement with State-owned utility Jiro sy Rano Malagasy has been amended to allow the utility up to 25 MW offtake from the project – the previous agreement was for 10 MW.

A draft bankable feasibility study (BFS) for the project was submitted in June by Lemur’s technical development partner Sinohydro and is being reviewed by an independent consultant.  

There is ongoing engagement with lenders for the construction phase of the project.

Bushveld has received expressions of interest for finance and political risk insurance from two financial institutions.

Once the review is completed and the BFS is finalised, it will provide a more accurate view of project construction costs and associated timelines, which will tie back to the funding discussions with lenders.

The BFS will also assist Lemur in progressing the engineering, procurement and construction (EPC) discussions. Funding discussions and the negotiation of the EPC contract will be among the key focus areas for the project in the second half of this year.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The Imaloto project remains on track to deliver electricity to Madagascar by 2021.

Contact Details for Project Information
Bushveld Minerals, Fortune Mojapelo, tel +27 11 268 6555.
Sinohydro Corporation, email africa@sinohydro.com.