Name of the Project
Rukwa coal-to-power project (RCPP).

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 project 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 second phase of the environmental- and social-impact assessment (Esia) for the RCPP is complete.

The relevant documents for the project have been approved by the Tanzanian National Environment Management Council.

Edenville will now focus on completing the main Esia report, which will include extensive data and consultation with the local community and stakeholders.

Meanwhile, trial mining has started at the RCPP.

Edenville has received formal interest from several companies for long-term coal supply. As a result, trial shipments of run-of-mine (RoM) coal have been transported to customers to determine appropriate logistical, quality and quantity parameters. Commercial rates are being paid for the delivery of this coal.

Consequentially, the company has decided to move the project to the next stage of development, which focuses on the start of commercial mining operations during this quarter and the acquisition of a coal processing facility.

Initial mining will focus on stripping the overburden and the production of a RoM coal stockpile. In parallel, a suitable coal wash plant will be established on site.

While some coal will be delivered unprocessed, it is envisaged that the majority of coal will undergo a degree of treatment through the wash plant to enhance the product for different customers and increase the potential returns to Edenville.

Initial mining operations will be under the control of Edenville and the company is well advanced in the selection of a suitable wash plant facility, which will will also be configured to process coal for the planned future power plant.

“I am very pleased we have been able to reach the stage where we are confident there is a long-term market for the coal from Rukwa. Our goal is to move our asset into generating positive cash flow in the near term and to become a key supplier of coal in the East Africa region. 

“Production will take place alongside the continued advancement of the planned coal-to-power project,” Edenville CEO Rufus Short has said.

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.