Name and Location
Rukwa coal 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 have been identified as having the best balance of shareholder return, deliverability and achievable capital requirements.

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
Following recent indications by the Tanzanian government of its commitment to begin construction of the country's main power grid in 2014, coal explorer Edenville Energy has confirmed its intention to construct a 100 MW power station at its Rukwa coal project, supplying energy directly to the country’s proposed new power grid.

Government has indicated that construction of the Western power line, between Mbeya and Sumbawanga, will start in 2014 and will be completed during 2016 – far earlier than previously indicated.

The primary transmission line will pass Sumbawanga, in close proximity to Rukwa, ultimately linking the existing and future power generation sources in the south and south-west of Tanzania to the load centres in the Mwanza and Arusha regions, in the north.

Government’s aim is to increase installed generation capacity from its current 1 438 MW to 2 780 MW by 2015, providing access to electricity for an additional four-million people.

Edenville’s announcement follows the September scoping study at Rukwa, which indicated that it was “commercially attractive” for the company to build a small power-generation facility that would operate independently of the main grid and require only a small share of the company's total coal resource.

However, Edenville says the accelerated progress of the Western power line enables the company to develop a larger power station using its entire coal resource, which will feed directly into the new grid infrastructure.

Power could also potentially be exported directly to Zambia, or other neighbouring States, using the existing 66 kV interconnector at Sumbawanga.

Edenville’s management team is currently in early-stage discussions with potential Asian partners.

These potential partners are “highly experienced” in the feasibility, construction and funding of projects of a similar scale and whose product is a similar quality of coal to that of Rukwa.

Discussions are also under way with qualified engineering and power consultants to guide the development process, including early-stage technical work and large-scale bulk sampling and metallurgical testwork, for a wash plant and power plant design.

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.