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

Location
Tanzania.

Project Owner/s
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 a month.

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.

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

Planned Start /End Date
Not stated.

Latest Developments
Edenville has received the proceeds of £100 000 from a share placement and expects to receive the net proceeds from a conditional offer to raise a further £410 000 shortly. It has, therefore, restarted a number of activities at its Rukwa coal project.

The company had previously been forced to constrain operations to maintain capital while it sought funding. It used the period of limited production to further optimise the plant and facilities at Rukwa.

The recalibration of parts of the plant, orders for additional low capital expenditure items and the reorganisation of the workforce are under way, and all upgrades are expected to be completed by the end of June.

These are in addition to the plant upgrades, such as the installation of the Lamella water treatment plant and the introduction of a prescreening plant, which have taken place over the past six months.

Upon completion of this optimisation process, the company expects to eliminate the previous issues that had hindered the throughput and operational capacity of the plant, thereby enabling the plant to reach its targeted initial production capacity of 10 000 t a month of washed coal.

Meanwhile, the company has started site preparations for road construction to the new mining area, to the north of current operations.

Upon completion of road construction, the company intends to open up this new pit and begin extracting coal before the end of the third quarter of this year.

Prior to opening the northern mining area, the company plans to continue to mine the existing pit to build up stockpiles and supply coal to existing customers.

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.