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. There is the possibility that the power plant could be scaled up to 300 MW.

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 coal into Tanzania.

Potential Job Creation
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
Edenville has started producing washed coal for sale at its Rukwa coal project.

This follows the completion of the commissioning and testing of the wash plant, which started in late September.

The wash plant is processing material to fulfil coal orders that have already been placed, with expectations that production levels will steadily increase over the next few months, reaching at least 10 000 t/m by January 2018.

Meanwhile, Edenville has signed a five-year coal offtake agreement with Kenya-based coal and commodities trader Riftcot.

Under the terms of the agreement, Riftcot will buy up to 75% a year of coal produced at  Rukwa at a recognised commercial market price.

Riftcot will also receive an arrangement fee for every coal delivery to cover the costs of marketing and the provision of transport.
 
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.