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
Edenville Energy has decided to focus its efforts in the Northern Area of the Rukwa project, owing to large coal measures and better-quality coal, while progressing from contractor haulage to owner-operated haulage. The company has bought two 30 t trucks from original-equipment manufacturer Tata to use for mining load-and-haul.

In the six months ended June 30, the company started exposing coal at Rukwa’s Northern Area and upgraded its coal wash plant.

Analysis of unwashed coal from the Northern Area in the period under review returned energy values averaging 6 200 kcal/kg, with the highest sample being valued at 6 800 kcal/kg.

These energy values are significantly higher than those seen in previously mined areas around Rukwa, which averaged about 5 000 kcal/kg.

The higher-value coal enables the company to sell coal without the requirement to put it through the wash plant.

Additionally, large coal measures of about 20 m – and up to 40 m – in thickness, 4 m from surface, have been exposed in the Northern Area, compared with measures of about 3.5 m in thickness in previously mined areas.

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.