Name of the Project
Rukwa coal-to-power project (RCPP).

Location
Tanzania.

Client
Edenville Energy.

Project Description
A feasibility study completed on the project has indicated an economically sound project with a 30-year, 120 MW coal-fired power plant.

The project hosts 171-million tons of measured and indicated coal, sufficient to support the station over the life of the project.

A small-scale mine scenario to provide coal for local markets is being worked on after the granting of a mining licence and the recent ban on coal into Tanzania.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Independent power modelling consultancy Diamond Energy has completed a new financial model for Aim-listed Edenville Energy’s RCPP.

The new financial model builds on and validates the results and integrity of the financial model compiled from the results of the 2015 power plant feasibility study.

It has resulted in a 14% increase in the project’s pretax net present value to $252-million, from the previous estimate of $220-million, while the internal rate of return has improved to 23.4%, compared with 23.1% in the 2015 study.

Value
The capital expenditure to deliver a combined mine and 120 MW power plant is estimated at between $180-million and $200-million.

Duration
Not stated.

Latest Developments
Edenville Energy has signed a letter of intent (LoI) to supply initially just more than 1 000 t/m of coal to a customer from its Rukwa operations.

The supply volumes could potentially increase to 7 000 t/m as the operation expands.

The LoI is the first stage of completing a formal coal supply agreement prior to first deliveries, expected to start in July. According to Edenville

CEO Rufus Short more than 100 t of coal have been shipped to the customer for trial purposes. Edenville is confident that it can deliver a product that will meet their needs.

Edenville is working on several other agreements that will provide additional sales.

Meanwhile, the miner is progressing with the establishment of the mining fleet on site with the acquisition of critical path equipment and the engagement of a local Tanzanian contractor to supply support equipment and services.

The company has acquired a Volvo EC300D excavator and a Volvo L120G loader to undertake loading at the mine site. The excavator will be used to carry out in-pit mining, while the loader will predominantly manage the stockpile area.

Key Contracts and Suppliers
Not 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.