Investor looks for partner in Rukwa coal plant joint venture

A prospective investor listed on the London Stock Exchange, Edenville Energy, is looking for partners in Tanzania and other East African countries to develop coal reserves based in Rukwa for commercial production of energy. 

According to the recent company report, a scooping study has firmed up the viability of the coal project, in south-western Tanzania.

The scooping study, which was completed by Sound Mining Solutions and published this month, showed the development of a small power-producing operation offered the fastest and most viable commercial opportunity to move forward towards production, supplying 10 MW of power to the local market.

“Just 35 per cent of the current coal resource has been assessed; this provides sufficient fuel to support a 50-year power plant project’s life span, through a straightforward open pit mine with a small footprint,” the company said in its half-year report.

The deposit had measured, indicated and inferred coal resources of 173 million tonnes for the three deposits evaluated, of which 57.5 million tonnes were measured and indicated at 17.42 MJ/kg.

Meanwhile, the company, which was seeking co-investors and partners for the development of a small-scale coal-to-power project, had tasked East African Mining and Energy specialist Rafco Group, to assist in sourcing a suitable partner for the next phase in its transition to becoming a power producer.

“The company is well funded to satisfy its immediate needs as it keeps a close eye on its operating costs. At the same time, we are maintaining a focused portfolio of licences in Tanzania and we aim to keep land-holding costs as low as practically possible as we progress,” Edenville said.

Tanzania has over 1 billion tonnes of coal reserves. Iringa Region has the largest coal deposits. According to latest reports from the Tanzania Geological Survey, the biggest coal reserve is at Mchuchuma where there are 536 million tonnes, followed by Songwe in Mbeya with 147 million tonnes.

Other areas with reserves are Ruvuma’s Mbalawala Ngaka, Rukwa, Songea’s Mhukuru, Mbinga’s Mbamba Bay and Njuga.
Source: The Citizen, reported by Ludger Kasumuni from Dar es Salaam, Tanzania
Share on Google Plus

About Abduel Elinaza

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.