Bushveld Minerals subsidiary Lemur has completed the review of the bankable feasibility study (BFS) for the power aspect of its Imaloto integrated thermal coal mining and independent power producer (IPP) project, in Madagascar.
It has also issued a request for proposals for legal advisory services to draft and negotiate engineering, procurement and construction contracts for the power project.
Further, the company has initiated the review process for the final draft of the BFS for the coal mine portion of the project.
It has also continued to progress the social- and environmental-impact assessment study fieldwork for the Imaloto project.
Due diligence for the project preparation finance has been concluded with one lender, while engagement with all lenders on project financing continues.
Lemur is also engaged in advanced discussions with an export credit insurance provider for credit and political risk insurance cover.
“The completion and review of the BFS for the power component of the Imaloto project represents a key milestone achieved as we press ahead in ensuring Lemur delivers on the potential of the Imaloto project.
“The project’s BFS shows that the Imaloto project is feasible and can deliver significant economic returns. More importantly, the Imaloto power project is the most advanced IPP baseload project in Madagascar. It will have transformational developmental benefits for the country’s southwest region, where the government has already implemented significant road infrastructure expansion,” Lemur CEO Prince Nyati commented in a statement on Wednesday.
Nyati indicated that the coal reserve and transmission line can support the generation capacity in excess of 60 MW in the medium to long term as demand is unlocked in the region.