JOHANNESBURG (miningweekly.com) – African coal explorer Edenville Energy on Wednesday commissioned the feasibility study for the establishment of a 100 MW clean coal thermal power plant at its Rukwa coal project, in Tanzania.
Edenville said the feasibility study, which was expected to be completed within the first quarter of next year, was key to the company progressing the Rukwa coal project on an independent basis.
"After considerable and positive feedback from power consultants, potential partners and the Tanzanian authorities we are confident that the time is right for Edenville to commission the power plant feasibility study (PPFS) and continue its investment into the Rukwa coal project, “ Edenville CEO Rufus Short noted.
He added that the clarity and insight the study would give to all parties involved, or wishing to be involved in the project, should allow the company to navigate the route towards power purchase agreements, involvement of partners in the project and negotiations about funding.
The scope of the PPFS, to be completed by engineering consultancy Laymeyer International’s India division, would include the determation of the optimum capacity of the power plant in relation to the quality and quantity of the coal available, the evacuation capacity of suitable grid infrastructure and the selection of suitable technology for the project.
The PPFS would also include the preparation of preliminary base diagrams for heat, mass and water, the development of preliminary flow diagrams and schemes on the plant’s layout and site positioning and the analysis of the major features of the power plant, including facilities for interconnection with the State grid.
The plant’s mechanical system, electrical system as well as the civil, structural and architectural design, environmental aspects and the project’s financial analysis were also included in the scope of the PPFS.
Meanwhile, Edenville on Wednesday also announced that it had raised £200 000 in additional working capital through a demand-led placing of 500-million new ordinary shares in the company.
Edenville explained that the funds had been raised from a small group of long-term existing shareholders.
“We are delighted that our long-term shareholders recognise the value in Edenville's Rukwa coal project and are supportive of the board and the progress made in recent months.
“This modest, demand-led raise brings sufficient new money into the company to progress us closer to the partner-ready stage while maintaining a reasonable cash balance,” Short commented.