LONDON (Alliance News) - Bushveld Minerals Ltd on Wednesday said it has finished reviewing a feasibility study for part of its Imaloto coal and power project in Madagascar.
Bushveld, via coal and energy subsidiary Lemur Holdings Ltd, has finished the study for the power part of Imaloto, and has now begun reviewing the coal mine aspect.
Phase one will see Bushveld have a capacity of 30 megawatts at Imaloto, doubling in phase two.
Bushveld, a vanadium miner, has also begun working on engineering, procurement, and construction contracts for the project, and is making progress on the social & environmental impact study.
The company has also finished due diligence for project financing with one lender and is working with others for further funds.
Chief Executive of Lemur Prince Nyati said: "The completion and review of the feasibility study for the power component of the Imaloto project represents a key milestone achieved as we press ahead in ensuring Lemur delivers on the potential of Imaloto.
"The project's feasibility study shows Imaloto is feasible and can deliver significant economic returns. More importantly, the Imaloto power project is the most advanced independent power project in Madagascar," Nyati continued.
"It will have transformational developmental benefits for the country's south-west region, where the government has already implemented significant road infrastructure expansion.
"The coal reserve and transmission line is capable to support the generation capacity in excess of 60 megawatt in the medium to long term as suppressed demand is unlocked in the region," Nyati added.
Shares were up 3.4% on Wednesday at a price of 35.40 pence each.
Bushveld Minerals (BMN)