JOHANNESBURG (miningweekly.com) – Aim-listed Edenville Energy hopes to complete the second stage of its environmental and social impact assessment (ESIA) for the Tanzania-based Rukwa coal-to-power project in the fourth quarter of the year.
CEO Rufus Short noted in a statement on Friday that this stage of the ESIA was nearing completion, with the relevant report and recommendations filed with the National Environment Management Council.
“Once this is approved, the ESIA moves onto a third stage comprising detailed investigation and reporting to complete the submission application,” he said, adding that the company was trying to focus on completing key areas that could provide critical information and enhance the value of the project, including moving forward with a more diversified bulk sampling programme, the completion of an updated coal-to-power economic model, and the initiation of a mineable resource technical and economic assessment.
The bulk sampling programme has been extended to include additional areas and will provide further information about the power plant's feedstock as well as near-term information for potential commercial coal customers.
“We are reviewing all options to increase the potential of the project beyond the initial 120 MW power plant that was outlined in the power plant feasibility study, carried out by engineering company Lahmeyer.”
Rukwa also has plans for a new 400 kV transmission line to be constructed within 12 km of the deposit.
“This power line is part of the Eastern African Power Pool Development Plan, which will see a total of 2 302 km of new power lines constructed between Kenya, Tanzania and Zambia,” he noted.
In mid-August 2016 Tanzania’s Ministry of Energy and Minerals issued a directive banning the importation of coal into the country.
“We understand the ban is effectively in place now and adds an additional dimension to the coal project at Rukwa. Although the core focus is and will continue to be the coal-to-power project, which fully utilises the potential of the resource both technically and economically, there is the opportunity to pursue viable supply contracts with potential customers who require regular coal supplies,” Short noted.
FINANCIAL RESULTS
The company made a £446 801 loss after taxation for the six months ended June 30.
The total comprehensive profit for the period was £100 732, which included a gain of £547 533 arising from the translation of the Tanzanian subsidiary company accounts from US dollars to pound sterling.
In March and June, the company raised, through the issue of new shares, gross proceeds of £400 000 and £432 500 to advance the mining and power plant development.