Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – The Rukwa coal-to-power project, in Tanzania, this week reached a milestone after an extensive due diligence and discussions led to project owner Edenville Energy receiving a nonbinding expression of interest (EoI) from an undisclosed potential partner.
The Aim-listed African coal exploration and development company was currently seeking a suitable partner to jointly develop a 100 MW power station, incorporating clean coal technology, at its Rukwa coal project, and several discussions with potential partners were under way.
The EoI outlined the intention of the engineering, procurement and construction division of an East Asia-headquartered multinational engineering and technology conglomerate to partner with Edenville in the development of the integrated mining and clean coal power station.
"[This] announcement is the latest step in the board's ongoing evaluation of the strategic options available to the company. As part of this process, we have been in meaningful dialogue with a number of parties interested, like ourselves, in best using the declared resource of the Rukwa coal-to-power project,” Edenville chairperson Sally Schofield said.
Edenville and the interested party were now working towards meeting several conditions and project milestones set out in the EoI, with the objective of entering into an exclusive development agreement.
However, Schofield pointed out that, as the discussions with all parties were still at an early stage, there was no certainty of an agreement or terms as yet.
Further, several sources of funding and investment were still being considered and dialogue was expected to continue as the technical work progressed, she concluded.