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 completed its fundraising, securing the necessary working capital to meet the current contracted production demands of up to 12 000 t of washed coal a month from its flagship Rukwa coal project.

Edenville has raised £700 000, before expenses, by placing 1.7-billion new ordinary shares valued at 0.02p each in the company at a placing price of 0.04p a share with existing stakeholders through Brandon Hill Capital.

In addition, subscribers in the placing will be issued one warrant for every two placing shares subscribed for. The warrants have a two-year life and will expire on January 23, 2022, and have an exercise price of 0.06p a share.

The issue and allotment of the placing shares will use the majority of the company's existing share authorities and, as such, Edenville says it will call a general meeting to seek renewal of share authorities to enable warrant holders to exercise their warrants. 

To ensure sufficient access to working capital if required, the company has been advised by private lender Brian McMaster that, in addition to his direct equity of subscription for £300 000, he would be willing to provide a loan of £300 000 for the company.

The proposed loan is subject to the completion of formal documentation and the consent of Lind Partners.

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.