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

Location
Tanzania.

Project Owner/s
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. There is the possibility that the power plant could be scaled up to 300 MW.

The Rukwa coalfields comprise the Mkomolo, Namwele and Muze deposits.

The project hosts 173-million tons of measured and indicated coal, sufficient to support the station over the life of the project.

Output has been estimated at 10 000 t/m.

Potential Job Creation
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.

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

Planned Start /End Date
Not stated.

Latest Developments
Edenville Energy has reported a low level of uptake of its open offer on the stock exchange and that, consequently, operations at its Rukwa coal project have been constrained.

The company has been implementing cost-cutting measures, including stopping overburden movement and focusing on more easily accessible coal,  to preserve working capital and, despite having the requisite approvals, it has been unable to expand its operations or increase mining capacity.

Until additional capital can be used for the project, the company’s management does not expect production to increase from current levels.

“Owing to the shortfall in the proceeds of the open offer, the company will need to raise additional capital in the near term . . . to meet its project and corporate commitments and is currently exploring several options at . . . a company and project level. A further update regarding financing will be made as soon as practicable,” the company has said.

Further corporate cost cutting measures have been undertaken and the directors have not taken their salaries since December 2018, after taking only part of their salary entitlements in 2018.

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.