Name of the Project
Imaloto independent power producer (IPP) coal-fired power plant project.
Location
The power plant will be located at the mine mouth of Lemur’s coal deposit, in Madagascar.
Client
Lemur Holdings, a subsidiary of Bushveld Minerals.
Project Description
The project involves the construction of an initial 60 MW IPP coal-fired power plant and an associated 138 kV, 200 km transmission line.
The power plant is expected to be fuelled by coal from Lemur’s coal mining permit area in Madagascar, which has a Joint Ore Reserves Committee-compliant resource of about 136-million tonnes of coal.
Potential Job Creation
The project will support the regional economy by creating 1 650 direct jobs, some of which have already been filled. However, the majority of jobs will be available during the construction phase, which will start in the next year or two.
Value
Not stated.
Duration
The project is expected to be commissioned in 2021.
Latest Developments
Bushveld Minerals has announced that the Imaloto project is on track to deliver electricity to south-western Madagascar by 2021.
At the end of the quarter ended September 30, 2018, the social- and environmental-impact assessment (Seia) fieldwork was still ongoing, with more than 50% of the community engagement completed.
Additionally, Lemur has stated that the Seia’s terms of reference were submitted to Madagascar’s Ministry of Environment, and that connection and transmission agreements were signed with State-utility Jiro sy Rano Malagasy, or Jirama, in the third quarter.
The Seia fieldwork is on track and is expected to be completed in the fourth quarter. However, Lemur has made an allowance to conduct specialised studies to include rainy-season impact scenarios, which may extend the completion of the technical Seia studies in the first quarter of 2019.
A joint review and finalisation of the bankable feasibility study (BFS) was submitted by Lemur’s technical development partner, Sinohydro, in June, and is still ongoing.
Some of the key expected outputs of the study include a detailed mine plan and the economic technofinancial model.
The power plant and mine are critical considerations for lenders to assess the viability of the Imaloto project, the company has explained. Once the BFS has been completed, Lemur will proceed to the engineering, procurement and construction (EPC) discussions, which will be a key focus area for the remainder of this year.
The coal mine BFS has, in the interim, been initiated and is expected to be completed in the upcoming quarter.
The BFS and Seia studies have been Bushveld’s key focus areas in the third quarter, Lemur CEO Prince Nyati has said.
Notwithstanding, he has said that the transmission and connection agreement with Jirama has been concluded.
Lemur’s focus for the remainder of this year is to complete the mine and power BFS studies, which the company expects to finalise in the fourth quarter.
“We will also be progressing project funding discussions and related due diligence activities as well as initiating EPC discussions.”
Lemur has also received an expression of interest for baseload power offtake from a global mining company in the Imaloto supply catchment area.
Meanwhile, the company continues to engage with lenders for the construction phase of the Imaloto power project.
Lemur has also received an offer for the project preparation finance from a regional development finance institution, which is subject to due diligence.
A financial model development, which is subject to the finalisation of the BFS, was also completed in the quarter ended September 30.
“We are pleased with the progress being made on the Imaloto project, especially with respect to securing institutional lenders for the construction phase of the project, with a number of the lenders concluding the initial due diligence on the project.
“We expect to advance discussions on terms of lending after the BFS is completed in the fourth quarter,” Bushveld CEO Fortune Mojapelo has noted.
In addition he notes that Bushveld remains committed to delivering on the value of the Imaloto project by ensuring that all key milestones are achieved according to schedule.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
The Imaloto project remains on track to deliver electricity to Madagascar by 2021.
Contact Details for Project Information
Bushveld Minerals, Fortune Mojapelo, tel +27 11 268 6555.
Sinohydro Corporation, email africa@sinohydro.com.