JOHANNESBURG (miningweekly.com) – Independent power modelling consultancy Diamond Energy has completed a new financial model for Aim-listed Edenville Energy’s Rukwa coal-to-power project, in Tanzania.
The new financial model builds on and validates the results and integrity of the financial model compiled from the results of the 2015 power plant feasibility study.
It has resulted in a 14% increase in the project’s pre-tax net present value to $252-million, from the previous estimate of $220-million, while the internal rate of return has improved to 23.4%, compared with 23.1% in the 2015 study.
"We now have both an additional level of assurance to what has been done previously and, going forward, will be able to use a fully independently constructed model [that is] structured for international project finance and preferable for funding negotiations,” says CEO Rufus Short.
He adds that Edenville is in the process of completing significant work flow including an updated mining assessment, bulk sampling of the deposit and detailed coal wash plant requirements.
“These will feed into the overall financial analysis of the project over the coming weeks and months,” he notes.
The Rukwa coal-to-power project will include a 173-million-ton mine and a 100 MW power station.