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 subsidiary Edenville International has entered into a sales and marketing agreement with Dubai-based MarTek Global, sister company Infrastructure and Logistics Tanzania Limited (ILTL).

The sales and marketing agreement follows the recently announced coal mining agreement that Edenville signed with ILTL, which provided for a fixed-rate mining and processing contract at the Rukwa coal project.

The coal mining agreement is effective from September 1 and will be conducted for four years, with an automatic renewal unless terminated by either party.

The coal mining agreement has been complemented by a $1-million loan agreement with ILTL, which further aligns the respective interests of ILTL and Edenville.

MarTek will provide an anchor tenancy at Rukwa of 3 000 t a month of washed coal that will increase to 5 000 t of coal a month over the first 12 months of the contract term.

MarTek’s purchase price for Rukwa coal is the highest that Edenville has achieved to date and should provide the company with a healthy margin on tonnes sold.

Edenville International and MarTek will share marketing and sales responsibilities in Tanzania for any sales above the anchor tenancy.

MarTek will have exclusive rights to market Rukwa coal internationally at a pre-agreed sales price, with any transport costs to be added to the sales price.

MarTek will leverage its logistics capabilities to supply these new markets.

Edenville International, MarTek and ILTL have agreed to focus on maximising production from the Rukwa project, with a target of increasing capacity in the near term to about 12 500 t a month.

Edenville CEO Alistair Muir has said that this third and final contract has concluded the restructuring of Edenville's Tanzanian operations. He believes that these agreements will collectively address prior challenges in terms of mining, processing and sales.

Key Contracts and Suppliers
Not stated.

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