JOHANNESBURG (miningweekly.com) – A host of proposals from various engineering, procurement and construction (EPC) companies has enabled Edenville Energy to carefully review options for the most financially viable route to build a power plant at its Rukwa coal-to-power project, in Tanzania.
The group on Wednesday said several technical and financial proposals for the construction of a 120 MW to 135 MW power plant had been received from several EPC groups, including an option for lower-cost, near-term construction.
“While the company's Rukwa coal resource could support a larger power plant, it is currently envisaged that a plant in this range will be the best option to establish power generation in the shortest possible timescale,” said Edenville CEO Rufus Short.
Many of the proposals are based on standard well-tested, off-the-shelf technology, with some drawing on previous contracts of similar sized plants.
Edenville refrained from tying itself to a particular group in an effort to “draw on the knowledge and experience of different groups” before it finalises the most appropriate deal.
In addition, with the significant differences in EPC costs between the various proposals, Edenville has identified considerable cost savings, which could potentially be applied to the power plant’s construction and operation. Options for plant acquisition could also result in a material reduction of overall project costs.
Edenville noted that contributions had been received from Runh Power, with which it had a collaboration agreement throughout 2016, as well as an undisclosed major international EPC group already active in East Africa.
The unnamed group had also completed a comprehensive independent financial review as part of its project proposal, supporting previous estimates and demonstrating a robust project.
“Their financial review supports the project’s viability, adds to the previous work carried out by Lahmeyer India in 2015, and provides a framework to move forward with development options,” said Short.
Edenville also continues to explore financing options and pursue opportunities for early small-scale mining in 2017, with discussions currently under way with several potential offtake buyers of Rukwa coal.
The project also recently underwent an extensive review by the Tanzanian authorities.
“We are now awaiting further directives from senior government representatives on how they wish to proceed with the power development,” he concluded.