LONDON (Alliance News) - Bushveld Minerals Ltd on Wednesday said the Imaloto project is on track to provide electricity to south western Madagascar by 2021.
Imaloto, which is being developed by Bushveld's subsidiary Lemur Holdings Ltd, is an integrated thermal coal mining and independent power project with a 136 million ton coal resource and a 30-year concession for a 60 megawatt coal power plant.
At present, the social & environmental impact assessment for Bushveld is ongoing, with terms of reference already submitted to the Madagascan environment ministry and 50% of community engagement complete.
A joint review and finalisation of the bankable feasibility study is still ongoing, having been submitted in June. Chief Executive Fortune Mojapelo said the company expects to advance lending discussions once this is complete in the fourth quarter of 2018.
An expression of interest for baseload power offtake at Imaloto has already been received, Bushveld said, from a global mining company in the area.
"Bushveld remains committed to delivering on the value of the Imaloto Power Project by ensuring that all key milestones are achieved according to schedule," said Mojapelo.
"This positions the project favourably for the various strategic options the Company is considering to ensure Lemur continues to receive the focussed attention needed in terms of human resources and capital requirements in order to reach financial close, and ultimately deliver the much needed electricity to Madagascar while unlocking value for Bushveld shareholders," Mojapelo added.
The CEO also noted that the company would continue to monitor Madagascar's political environment given the upcoming presidential elections in November and December.
Shares in Bushveld were up 2.2% at 27.80 pence on Wednesday.
Bushveld Minerals (BMN)