LONDON (Alliance News) - Edenville Energy PLC on Tuesday said it sees 2016 as a "transformational year" for the Rukwa coal-to-power project, with the company focused on securing a power purchase agreement and project level finance prior to getting underway with construction.
Edenville, which is developing the project in south western Tanzania, was updating the market on its work programme for the first quarter of 2016.
Following on from a recent collaboration agreement, Edenville and Runh Power have agreed that the initial phase of the work programme will comprise of multiple meetings with Tanzanian government organisations and technical analysis at the Rukwa site, aimed at developing the project in line with Tanzania's power development plan.
According to a statement, Edenville and Runh Power will work to "action" the remaining bankable feasibility work, expanding the Lahmeyer Rukwa power plant feasibility study to generate a definitive technical study and financial model which will underpin power purchase agreement negotiations with the Tanzanian government and move forward with financing options with "suitable" institutions.
Meanwhile, the mining licence application process continues. "The application has reached the stage of being placed on the MEM Cadastre system with the status of 'Application Recommended'. It is now awaiting the input of senior officials in the Ministry of Energy and Minerals to complete the process," Edenville said.
Elsewhere, a geophysical survey covering ground magnetics initiated in early 2015 aims to "better delineate" the boundaries of the coal basins and possible extensions outside the existing resource has been completed over the Namwele - Mkomolo region.
"A total of 116 survey lines at a spacing of 250 metres over the entire 16 kilometres of Karoo basin was completed. This work totalled over 400 line kilometres of survey work. This data base will be forwarded to a geophysical consultant for final analysis and interpretation during 2016," Edenville said.
Shares in Edenville were up 0.4% at 0.0364 pence on Monday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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