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 Rukwa coalfields comprise the Mkomolo, Namwele and Muze deposits.

The project hosts 173-million tons of measured and indicated coal, sufficient to support the station over the life of the project.

Output has been estimated at 10 000 t/m.

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 Energy has signed a one-year contract for a minimum of 2 000 t/m of coal with an East African industrial user, with further trial orders of several thousand tonnes of coal for other potential customers being filled.

The company, which is selling all orders at commercial market rates, has started production on a new order for 4 000 t of coal for use by a Tanzanian customer.

“If the coal is deemed suitable for the customer's needs having used this initial order, the customer has requested another 60 000 t over a period of six months,” said Edenville CEO Rufus Short.

Trials are also under way with a third customer, which, if successful, are expected to result in future orders on an ongoing basis.

In January, Edenville reported that mining operations at Rukwa were proceeding as planned, with high-quality, near-surface coal being extracted from the Mkomolo deposit.

The coal miner said operations had kept pace with demand and plant capacity, despite seasonal heavy rains. 

“To help fulfil the demand for coal we are experiencing, and to potentially increase the amount of unprocessed coal the company can sell, we have started to also mine the Namwele deposit,” the company noted.  

Namwele, which is situated to the south of the Mkomolo deposit, will be mined by Edenville’s Tanzanian partner, Upendo, which has started clearing the overburden.

“We expect the first Namwele coal to be mined before the end of the first quarter [of this year].”

Coal quality, in terms of calorific value and ash content, is exceeding management's initial expectations.  

Recent results from the company’s on-site laboratory have given encouraging calorific values for Mkomolo, including 734 gross calorific value (GCV) on an air-dried basis, correlating with previous results. 

“Of note is the energy value contained in our raw coal fines material, recently testing at 4 753 GCV on an as-received basis. This has a positive effect in terms of the value of commercial sales, as well as the long-term economics of the power plant development and related coal supply.” 

The company's wash plant and associated equipment is running at a throughput of 30 t/h to 40 t/h, operating for eight to ten hours a day, six days a week.

Edenville is, therefore, able to process 8 000 t/m to 10 000 t/m of mined material.

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.