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 relatively low capital expenditure (capex) 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.
The Rukwa coal-to-power project hosts 171-million tons of measured and indicated coal, sufficient to support a 120 MW power station over the life of the project.
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
Tanzania Energy and Minerals Minister Sospeter Muhongo has awarded a mining licence for Edenville’s Rukwa coal-to-power project.
The company has agreed on a work programme with engineering, procurement and construction company Runh Power to advance the project during the first quarter of this year.
The work programme aims to expand on the Rukwa power plant feasibility study from last year to generate a definitive technical study and financial model underpinning power purchase agreement negotiations with the Tanzanian government and advancing financing options with suitable institutions.
Meanwhile, Edenville has seen a capital increase of £400 000 after raising the subscription of 1.3-billion new ordinary shares by 0.02p to 0.03p apiece to raise company capital.
The shares were raised after the coal-to-power project developer was granted the mining licence for its Rukwa coal deposit, The sahres will be placed together with 666-million warrants, exercisable at 0.04p a warrant.
The additional funds will enable Edenville to progress the key deliverables in the draft framework agreement with Tanzania Electric Supply Company, while allowing it to start common groundworks on site.
The company can now also engage in formal negotiations for a power purchase agreement (PPA) and transmission-line agreement, enabling it to appraise the near-surface coal contained with Rukwa’s 171-million-ton measured and indicated coal resource.
This near-surface coal is expected to provide the fuel source for the initial phase of any power station development and, together with the PPA, form the basis for a firm financing proposal with a power partner.
Key Contracts and Suppliers
Runh Power Corporation (EPC).
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.
Runh Power Corporation, tel +82 531 835 30876 or email info@runh.com.