Business
Rukwa Coal Project Scoping Study Results
Rukwa Coal Project Scoping Study Results.
About this update from Shuka Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 4573N Edenville Energy PLC 09 September 2013 \n \n\n \nEdenville Energy plc \n(\"Edenville\" or \"the Company\")\nRukwa Coal Project Scoping Study Results\n \nEdenville Energy plc (AIM:EDL), the coal focused African energy exploration and development company, is pleased to announce highlights of the results of the Scoping Study it commissioned into the viability of its Rukwa Coal Project located in south-western Tanzania.\n \n \nThe Scoping Study which was commissioned by Edenville in April 2013, was carried out by Sound Mining Solution (Pty) Ltd (\"Sound Mining\"). The objective of the study was to explore the viability of a small open pit mining operation as per the press release dated 11th April 2013. Sound Mining has completed a number of different financial scenarios for the Rukwa Coal Project. A small scale mine and power plant ('coal-to-power') scenario to provide electricity to local markets has been identified by the Company as possessing the best balance of shareholder return, deliverability and achievable capital requirements.\n \n \nHighlights\n \n· Small power producer scenario offers the fastest and most viable commercial opportunity to move forward towards production \n \n· Estimated Capex to deliver a combined mine and power plant is between USD35m - USD50m, realistic and achievable for a junior resources company\n \n· Optimal coal-to-power scenario based on 10MW power plant supplying local market\n \n· Just 35% of current coal resource has been assessed and provides sufficient fuel to support 50 year power plant and project lifespan \n \n· Straightforward open pit mine with small footprint\n \n· Strong and consistent free operational cashflow, after costs, from electricity generation estimated to be upwards of US$10 million per annum, providing an annuity over the life of the project \n \n· Upside potential to expand and add other Edenville or third party power facilities (coal or renewable) in the region thereby increasing revenue\n \n· Low commodity price risk; not depend...