Name and Location
Rukwa coal-to-power project, Tanzania.
Client
Edenville Energy.
Project Description
A scoping study completed on the Rukwa coal project has indicated an economically sound project with a relatively low capital expenditure (capex) cost and a 50-year life-of-mine. A small-scale mine and power plant (coal-to-power) scenario to provide electricity for local markets has been identified as having the best balance for shareholder return, deliverability and achievable capital requirements.
Net Present Value/Internal Rate of Return
Not stated.
Value
The capex to deliver a combined mine and power plant is estimated at between $35-million and $50-million.
Duration
Not stated.
Latest Developments
Edenville expects the submission process for a mining licence application for its Rukwa coal project to be completed by the end of June.
The company says data and documents, including a mining plan, an employment plan and a corprorate and social responsibility framework, to accompany the application have been completed and reviewed.
Securing the mining licence well ahead of any power plant development will enable the company to present a significantly advanced and derisked project to its investors and potential partners.
In addition, it presents an opportunity to generate early-stage cash flow, with the mine to supply regional coal users, should commercially viable terms be agreed.
Edenville CEO Rufus Short has noted that once the mining licence has been granted, options for development will be enhanced and significantly derisked.
The company has also started ground magnetic survey work in the Namwele area as part of its 2015 exploration programme and expects to expand this work as the dry season continues.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Not stated.
Contact Details for Project Information
Edenville Energy, tel +44 20 7653 9850 or email info@edenville-energy.com.