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Rukwa Coal to Power Project Receive Government Request to Go Ahead

May 31, 2017
1 minute read
Tanzania Rukwa Coal Project

London-listed energy and mining company Edenville Energy (AIM:EDL) has recently announced that it has received a formal request from the Ministry of Energy and Minerals of Tanzania (MEM) to proceed with the development of its Rukwa Coal to Power Project near Sumbawanga in the Rukwa Region of Tanzania.

In early 2017 a new Power Master Plan Update was released by the Government of Tanzania that included the Rukwa Coal to Power Project, the company explains.

The project’s feasibility study was carried out in 2015 for a 120MW power generation facility. However, MEM has indicated a larger facility of up to 300MW can be constructed at Rukwa, assuming technical, financial and commercial parameters can be satisfied.

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“In parallel with this, talks will take place with The Tanzanian Electric Supply Company (TANESCO) to finalize the Power Purchase Agreement (PPA) and associated transmission infrastructure that will be needed to take the electricity,” the company’s press release reads.

Rufus Short, CEO of Edenville Energy commented: “The request from the MEM is a very significant step forward in the timeline for the development of the Project. […] The next few years will be an extraordinarily busy and transformative time for the company as both the mine and the power plant are developed.”

Edenville Energy was granted a mining license by MEM in early 2016, to develop the Rukwa coalfields in the country’s southwestern region.

In January 2017 the company signed a Memorandum of Understanding (MoU) with Sinohydro Corporation of China to complete a Bankable Feasibility Study on the project.

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Want to know more about investing in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers the economy, key sectors and investment opportunities. The complete 141-page edition, which includes policies, taxation, key regulations, full macroeconomic data and sources, is also available at no cost upon completion of a short form.

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