This development follows recent indications by the Tanzanian government of a commitment to start constructing the country’s main power grid during 2014.
Tanzanian government organisations have indicated the construction of the Western Power Line between Mbeya and Sumbawanga, forming part of the grid system, will start in 2014.
Construction of this part of the grid is expected to be completed during 2016, earlier than previously expected.
Edenville’s Rukwa coal deposit is ideally located to support a 100MW coal-fired plant to supply electricity to the Sumbwanga-Mbeya line.
A scoping study completed in September by Sound Mining Solutions from South Africa indicated it would be commercially attractive for Edenville to build a small power plant that would operate independently of the main grid and use only a small part of its coal resource.
However, the accelerated progress of the Western Power Line gives Edenville the chance to move towards development of a larger power station and use its entire coal resource.
Edenville’s management team is in early stage discussions with potential partners from Asia with relevant experience and expertise to develop the project.
Discussions are also underway with qualified engineering and power consultants who will guide the development process alongside Edenville and its future project partners.
This will include some early stage technical work, comprising large scale bulk sampling and metallurgical test work for wash plant and power plant design alongside completion of the Environmental Impact Assessment for a starter pit.
Edenville chairwoman Sally Schofield said the accelerated progress of the Western Power Line was a good opportunity.
“With a 100MW-plus power plant we believe we will have a sustainable long-term project that can contribute significantly to Tanzania’s future power requirements,” she said.