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EDL's prospects

By BFN News | 09:33 AM | Monday 02 March, 2015


Edenville Energy has announced the results of the power plant feasibility study for its Rukwa coal to power project in western Tanzania. Contemporaneously with the production of the feasibility study, the company has developed a financial model to assess the economics of the project which has been reviewed and validated by Lahmeyer India, which was appointed as a consultant for the preparation of the feasibility study. The Feasibility Study and Financial Model consider the coal mine and power plant as an integrated commercial entity, with profits generated by the sale of electricity from a coal-fired power station. The feasibility study and financial model suggest that a power plant could be developed in two phases: · Phase 1 comprising of two units of 60MW each (total 120MW) · Phase 2 comprising of two units of up to 120MW each (total 240MW) · Opportunity for rapid scale up to Phase 2 in parallel with the increasing demand profile in Tanzania Chief executive Rufus Short said: "We are extremely pleased to have advanced the project to a stage where it can be taken forward on the basis of a feasible and realistic business plan. The completion of this vitally important work to demonstrate the viability of mining and power generation at our project site is critical to the next phase of development. The results show a robust case to move forward with further work to advance the project for the benefit of both our shareholders and the people of Tanzania. "We are now in a position to progress through the next steps of project development through advanced discussions with Tanzanian government organisations; commercial entities seeking a sustainable power supply and potential partners who wish to become involved in the project development. "The 120MW Power Plant demonstrates the optimal attributes from a technical and economic perspective and we believe the ability to support local and regional business development is an important part of making the project successful. "The project studies are now sufficiently advanced to enable us to move forward with detailed partnership discussions and completion of the necessary steps to progress the project in line with Tanzanian Government requirements. "As a result, over the coming months work will be increasingly concentrated to move forward the options open to the company and to progress towards the development phase. Shareholders will appreciate that identification of, and negotiation with, potential partners for the financing, development and operation of a plant can be complex and time consuming. The commercially sensitive nature of much of the dialogue prevents us from being explicit on certain aspects at this stage but we will continue to update the shareholders as and when appropriate. The board is excited about the prospects for the company." At 9:33am: (LON:EDL) Edenville Energy PLC share price was -0.01p at 0.05p Story provided by StockMarketWire.com

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