Name and Location
Rukwa coal-to-power project, Tanzania.

Client
Edenville Energy.

Project Description
A scoping study completed on the Rukwa coal project has indicated an economically sound project with a relatively low capital expenditure (capex) cost and a 50-year life-of-mine. A small-scale mine and power plant (coal-to-power) scenario to provide electricity for local markets has been identified as having the best balance for shareholder return, deliverability and achievable capital requirements.

The Rukwa coal-to-power project hosts 171-million tons of measured and indicated coal, sufficient to support a 120 MW power station over the life of the project.

Net Present Value/Internal Rate of Return
Not stated.

Value
The capex to deliver a combined mine and power plant is estimated at between $35-million and $50-million.

Duration
Not stated.

Latest Developments
Edenville has entered into a binding collaboration agreement with Runh Power Corporation to progress its Rukwa coal-to-power project.

The agreement marks the first stage in the progression towards a full engineering, procurement and construction (EPC) contract for the 173-million-ton mine and power generation plant.
 
Edenville has noted that it retains its 90% interest in the project. “We are now entering an exciting phase in the development timeline . . . at a project level and on the movement forward with the Tanzanian power generation policy,” Edenville CEO Rufus Short has said.
 
Edenville will develop the coal mining component of the project to work towards meeting the technical, financial and regulatory requirements necessary to allow for the funding and development of the coal mine to supply the power plant. 

It will also provide information on the estimated timeframe to complete specific requirements and tasks in Tanzania relating to the coal mining component of the project.

Meanwhile, Runh will provide EPC services to progress the power plant component of the project to a stage where funding can be sought for procurement and construction, as well as assist in developing the project through the Tanzanian regulatory system, including advancement to a power purchase agreement.

It will also assist Edenville in sourcing and securing appropriate funding for the project, which could include advice on and introductions to suitable financial institutions in China.
 
The agreement will run for an initial one-year period, with an option to extend. At the end of a six-month period, the progress on the principal development goals will be reviewed.

Key Contracts and Suppliers
Runh Power Corporation (EPC).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Edenville Energy, tel +44 20 7653 9850 or email info@edenville-energy.com.
Runh Power Corporation, tel +82 531 835 30876 or email info@runh.com.