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

Location
Tanzania.

Client
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 Rukwa coal-to-power project (RCPP) hosts 171-million tons of measured and indicated coal, sufficient to support the station over the life of the project.

A small-scale mine scenario to provide coal for local markets is being worked on after the granting of a mining licence and the recent ban on imported coal into Tanzania.

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 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.

Value
The capital expenditure to deliver a combined mine and 120 MW power plant is estimated at between $180-million and $200-million.

Duration
Not stated.

Latest Developments
The latest sampling and wash test results are validating the initial positive results of the recent bulk sampling programme at the RCPP.

The results from seam MK1, which follows closely on that of the seam MK2 results published on November 15, confirm that the near-surface coal from both seams is suitable for use in thermal power generation.

Edenville completed its bulk sampling programme in September, with 20 t of samples delivered to SGS Laboratories, in Johannesburg.

“The two seams opened up so far in South Mkomolo have demonstrated very good values and wash yields for coal ideally suited for the proposed power plant. Assuming the yields can be translated into production, this will have a significant positive impact on the economics of the project,” Edenville CEO Rufus Short has said.

The owners of other planned power projects in East Africa have expressed an interest in Edenville’s project, with discussions under way for pricing and supply.

"We now have a Phase 1, ten-year mining plan which opens up the northern area of Mkomolo and can produce multiple product streams to provide power plant feedstock and coal for industrial applications,” Short has added, noting the confidence that the company has in Rukwa coal being suitable for use in a variety of power plants, including the planned facility at Rukwa.

The data obtained from the bulk sampling programme will form part of the process of the design and construction of a coal-fired power plant at the Rukwa project site.
 
Meanwhile, Edenville raised £500 000 in September 2016 through an oversubscribed placing to new and existing shareholders to advance commercial mining operations at its RCPP.

The raising will also be used to continue the project’s technical and regulatory requirements, and for general corporate requirements, which were  anticipated in light of the opportunity that the East African country’s import ban on coal would 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
Not stated.

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.