Name and Location
Rukwa coal-to-power project, Tanzania.

Client
Edenville Energy.

Project Description
The Rukwa coal project hosts measured and indicated resources of 171-million tons of coal, enough to support a 120-MW power station over the life of the project.

A feasibility study on the project has suggested that a power plant could be developed in two phases.

The feasibility study is based on coal extraction from the Mkomolo and Namwele deposits. The Muze deposit, which has a Joint Ore Resource Committee- (Jorc-) compliant mineral resource of about 11-million tonnes and a historical mineral resource (non-Jorc compliant) of about 60-million tonnes, has not been considered in the study. Inclusion of the Muze deposit could add a considerable advantage to the positive findings from the feasibility study and will be considered in future expansion planning.

Phase 1 could comprise two units of 60 MW each and Phase 2 two units of up to 120 MW each.

Sufficient near-surface coal supplies, at a strip ratio of 1:1, are available to feed the 120 MW plant for at least 30 years.

The option to expand the project in Phase 2 to more than 300 MW as the power demand profile increases over time, is being reviewed.

Value
The combined capital expenditure of $175-million for the power plant and mine, which equates to about $1.45-million per megawatt is considered competitive in terms of industry costs to develop the project.

Duration
The feasibility study estimates that the project will completed by 2018.

Latest Developments
Edenville has reshuffled its board of directors, citing a need to better reflect the needs of the business going forward, maintain a carefully managed cost base, and retain the experience and knowledge of key directors relevant for this stage of the company's development.

The group has added that new interest and increasing activity in Tanzania – as the company positioned itself with the Tanzanian government authorities to progress its Rukwa power plant project – has required “appropriate” board reorganisation.

Consequently, COO and nonexecutive director Mark Pryor, who has extensive knowledge of Edenville's Rukwa coal assets, will occupy an executive director position as Edenville's COO.

Edenville has stated that, as Pryor’s involvement with Edenville, both in the UK and Tanzania, has increased in recent months, this executive position better reflectes his role in driving the business forward.

Further, “to maintain the balance of the board”, executive chairperson Sally Schofield will become nonexecutive chairperson of the company, with a commensurate reduction in salary.

As an additional cost reduction measure, FD Rakesh Patel will step down, but will continue to provide financial and accountancy services to the company as a consultant.

Following the reorganisation, the board will comprise Pryor, Schofield, executive director and CEO Rufus Short, and executive director and nonexecutive director Arun Srivastava.

Edenville believes the changes will help to keep fixed costs at an appropriate level while it progresses discussions with potential financial and technical partners for the next phase of its development.

Short is, meanwhile, continuing to lead discussions with a number of parties interested in Rukwa and will advise shareholders once these discussions have progressed to an “appropriate” stage.

Key Contracts and Suppliers
Lahmeyer International (feasibility consultant).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Edenville Energy, email info@edenville-energy.com.
Lahmeyer International, tel +49 6101 55 0, fax +49 6101 55 2222 or email info@de.lahmeyer.com.