Name of the Project
Imaloto coal project and extension.

Location
The power plant will be located at the mine mouth of Lemur’s coal deposit, in south-west Madagascar.

Client
Lemur Holdings, a subsidiary of Bushveld Minerals.

Project Description
Imaloto is the only coal-to-power solution being developed in Madagascar.

The integrated coal-fired power project envisages a 136-million-tonne coal mine, a 60 MW power plant and a new transmission line stretching over 250 km.

The power plant is scalable and the transmission line is expandable up to 500 km.

The power station will be located adjacent to the coal mine, providing a captive market for the mine’s production.

The project has a full mining right for the coal mine and a 30-year independent power producer concession from the government of Madagascar. Lemur has also concluded a 30-year power purchase agreement for an initial 25 MW from Jirama, the State-owned electric utility and water services company.

Potential Job Creation
The project will support the regional economy by creating 1 650 direct jobs, some of which have been filled. However, the majority of jobs will be available during the construction phase, which will start in the next year or two.

Value
In its operational update for the first quarter of 2020, Lemur reported that engagement with potential lenders for project finance was ongoing. Discussions with lenders are expected to be concluded during 2020, once the key studies, such as the social- and economic-impact assessment (SEIA) and the mine definitive feasibility study are completed.

The project will require $160-million in funding.

Duration
The project is expected to be commissioned in 2022, subject to financial close.

Latest Developments
Lemur completed its drilling programme for the SEIA specialist studies in December 2019. Lemur expects to submit the SEIA studies to the Ministry of the Environment during the second half of 2020.

The coal mine optimisation study, aimed at exploiting the underground portion of the mine, has been completed. On the basis of this study, Lemur has developed the scope of work for a definitive feasibility study, which started in the first quarter of 2020 and is expected to be completed by the end of the third quarter of 2020. 

The engineering, procurement and construction contract negotiations with Sinohydro for the Imaloto power station and the preferred bidder for construction of the transmission lines are ongoing, and are expected to be finalised during the second half of 2020.

Lemur is in project finance discussions with interested lenders for the construction capital. The company’s objective is to get the project to a ‘construction-ready’ stage, which the company previously announced would be completed in the first half of 2020.

Owing to the effects of Covid-19, Lemur expects that the project will be construction ready in the first half of 2021 and attain financial close soon afterwards.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Bushveld Minerals, tel +27 11 268 6555 or email info@bushveldminerals.com.