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 has raised £500 000 through an oversubscribed placing to new and existing shareholders to advance commercial mining operations at its Rukwa coal-to-power project.

The raising will also be used to continue the project’s technical and regulatory requirements, and for general corporate requirements in anticipation of the opportunity that the East African country’s import ban will provide.

In August, Edenville started reviewing its options of near-term coal supply after the Tanzanian government placed an immediate ban on the import of coal.

The Tanzanian Ministry of Energy and Minerals aims to unlock the development potential of the local coal industry by stimulating local commercial production of the country’s resources.

The placing shares were expected to be admitted for trading on Aim on October 4.

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.