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.

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
Edenville Energy has made “good progress” in discussions with potential development partners for its Rukwa coal-to-power-project.

Cost analyses with details of key modules – including the boiler, turbine and generator and balance-of-plant components – have been received from several engineering, procurement and construction (EPC) groups.

Further refinement of costs is expected as work continues, while additional visits to Tanzania by potential partners are expected and continuing. The groups concenred are undertaking technical and commercial analysis in conjunction with the Edenville team.

Edenville has also continued talks with banks for the provision of debt finance for the project, as financiers often work alongside EPC groups to ensure adequate project finance is available when needed throughout the project build. .

The master plan entails transmission line expansion and upgrade work, along with the selection of the most suitable power generation solution for each region.

“During the fourth quarter, when all interested parties will have concluded meetings and put forward formal proposals, we expect our discussions to reach a point where a structured, multiparty plan can allow for the project to progress to the stage where advanced discussions on timing for project development can be entered into with the Tanzanian authorities,” Edenville CEO Rufus Short has commented.

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.