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 a month.

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
Coal mining has started in the new northern mining area of Edenville Energy’s flagship Rukwa coal project.

CEO Rufus Short has said that, as the project is developed further, the company expects that significant quantities of coal could be extracted from the area.

“This, coupled with the plant improvements . . . should enable Edenville to become cashflow positive within the next nine months, as it targets an initial washed coal production of 6 000 t a month, which we consider to be a breakeven level, increasing to more than 10 000 t a month thereafter,” Short has said.

The start of coal mining follows the overburden stripping and exposing of coal, the extraction of which has started. The main coal measures that have been exposed and are being mined in the northern area are collectively about 20 m thick, compared with coal measures of about 3.5 m thickness in previously mined areas.

According to Edenville, the coal measures appear consistent with only moderate amounts of material, such as mudstone, currently in the seam structure.  

Edenville believes that a portion of this coal has the potential to be screened and sold unwashed, owing to its already high calorific value. 

Further, coal is also starting to be uncovered to the west of the already exposed coal measures within the Northern Area, which will be progressively uncovered in the future. For now, however, mining is concentrating on further opening up the coal measures, north and south, along the strike of the coal in the Northern Area.

The wash plant is continuing to increase production from the low levels during the second quarter of this year, averaging 60 t/d of washed product produced from the original mining area and excluding any coal mined from the Northern Area per single shift.

Once sufficient material from the Northern Area is available, Edenville expects the wash plant to move back to a double-shift basis.

In addition to increased throughput rates, the company believes that the recent upgrades to the plant will result in less plant downtime and allow for a more consistent production profile to be achieved at the project.  

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
The project is on track.

Contact Details for Project Information
Edenville Energy, tel +44 20 7653 9850 or email info@edenville-energy.com.