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 Energy has started mining operations at the new northern area of the RCCP, and has also recorded a number of other recent project developments.

The start of mining follows the completion of the work carried out on the haul road, which runs from the plant to the northern area.

Overburden stripping and exposing of coal have started in the northern area.

The northern area contains thicker seams – up to 40 m thick in some areas and starting about 2 mm from surface – than those previously mined.

The directors believe that coal from the northern area has the potential to provide greater yields and better qualities than areas previously mined.

The wash plant has started batch processing of fine coal stockpiles through the prescreen, allowing for about 40% of the fine coal stockpiles to be reclassified as sized coal product, available for washing or direct sale.

Analysis of this screened, but unwashed coal, is returning values of about 5 000 kcal/kg.

The company remains in discussions with potential buyers of fine coal. Other opportunities available with regard to the sale of fine coal are also being assessed.

Edenville has said that it will continue to push progress with the northern area that, coupled with the recent plant improvements it has made, should enable the company to increase production.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
The project is on track.

Contact Details for Project Information
Edenville Energy, tel +44 20 7653 9850 or email info@edenville-energy.com.