Name of the Project
Rukwa coal-to-power project.

Location
Tanzania.

Client
Edenville Energy.

Project Description
A scoping study completed on the project has indicated an economically sound project with relatively low capital expenditure (capex) 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.

Jobs to be Created
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 Rukwa coal-to-power project.

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.

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 hopes to complete the second stage of its environmental- and social-impact assessment (ESIA) for the Rukwa coal-to-power project in the fourth quarter of the year.

CEO Rufus Short has noted in a statement that this stage of the ESIA is 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 has said, adding that the company is trying to focus on completing key areas that could provide critical information and enhance the value of the project, including progressing 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 and 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 . . . 2 302 km of new power lines constructed between Kenya, Tanzania and Zambia,” he has noted. 

In mid-August Tanzania’s Ministry of Energy and Minerals issued a directive banning coal imports 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 technically and economically, there is the opportunity to pursue viable supply contracts with potential customers who require regular coal supplies,” Short says.

Meanwhile, Edenville is completing significant workflow, including an updated mining assessment, bulk sampling of the deposit and detailed coal wash plant requirements.

“These will feed into the overall financial analysis of the project,” he notes.

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.