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. The power plant could possibly 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 reported on July 29 that the restart of operations at its Rukwa coal project had been brought forward to August 3.

Edenville has entered into a coal mining agreement and a loan agreement with its new strategic partner Infrastructure Logistics Tanzania Limited (ILTL).

The agreements were subject to the agreement of a start date for operations with ILTL, which, in turn, was dictated by the ability of ILTL to relocate key operational personnel to site from international locations.

Edenville will handle the initial restart of Rukwa in consultation with ILTL before handing over operational control to ILTL on September 1.

Edenville also recently stated its intention to enter into a sales and marketing agreement with ILTL to market coal to additional customers beyond Edenville's existing customer base at an agreed rate per tonne of washed coal that will be paid to Edenville, thereby providing additional revenue streams.

In addition, ILTL will also provide an anchor tenancy at Rukwa through the initial purchase of a minimum of 3 000 t a month of washed coal, before increasing to

5 000 t a month over the ensuing 12-month period.

With the confirmation of the start date, Edenville expects to finalise and enter into this agreement during August.

Key Contracts and Suppliers
Not stated.

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