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

Location
Tanzania.

Project Owner/s
Edenville Energy.

Project Description
A feasibility study has indicated an economically sound project with a 30-year, 120 MW coal-fired power plant. The power plant could possibly 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 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 continues to face challenges at its Rukwa mine, as a result of wet weather and warnings from the Mining Commission in Tanzania that the company has failed to perform certain tasks required under its mining licence.

The company reports that, although it has stockpiled a substantial amount of run-of-mine (RoM) coal at Rukwa to mitigate, as far as possible, the impact from the rainy season, the RoM coal has proven difficult to wash as a result of its moisture content.

The production of washed coal is, therefore, expected to be reduced for as long as the rains continue, which could be for several more months, the company has warned.

Meanwhile, Edenville continues to run the day-to-day operations at Rukwa while it is in discussions with the Mining Commission about the outstanding requirements under the mining licence.

The company has said that both parties have agreed to work on resolving any outstanding issues while ensuring that the company is in full compliance with local regulations.

Edenville looks forward to remedying the outstanding matters concerning the licence in consultation with the commission on a timely basis.

Key Contracts, Suppliers and Consultants
Not stated.

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