22nd May 2018 16:01
LONDON (Alliance News) - Bushveld Minerals Ltd said Tuesday it has signed a 30-year concession agreement with the government of the Republic of Madagascar for the approval to develop, construct and maintain an integrated thermal coal mining and independent power project.
Lemur Holdings Ltd, Bushveld's coal and energy subsidiary, through its Madagascan subsidiary Imaloto Power Project SARL, signed the agreement with the Ministry of Energy and Hydrocarbons.
The project states the power plant, which has an initial capacity of 60 megawatts and over 250 kilometres of transmission, will be located at the mine-mouth Bushveld's coal deposit, which has a resource of about 136 million tonnes of coal.
The company will be building an evacuation line of up to 138 kilovolts for the transport of the electricity to the connection points.
Bushvled holds the right to build/renovate, possess, operate and maintain the 60 megwatt coal-fired power plant in Imaloto, southern Madagascar. The project remains on track to deliver electricity to Madagascar by 2021.
The project aims to increase Madagascar's installed generation capacity by 12%.
Chief Executive Officer Fortune Mojapelo said: "Lemur is a pioneer in the coal energy space in Madagascar. Since the beginning of 2017, Lemur has made significant strides on the Imaloto Project as an integrated mine and power company. Lemur's achievements are reflective of Bushveld's core strategy of creating value through integration, this approach is clearly demonstrated in our flagship vanadium platform.
"Notwithstanding Bushveld Minerals' focus on its flagship vanadium platform, the company is committed to deliver on the value of the Imaloto Project by completing the milestones that were set out for this year. These include: progressing the Bankable Feasibility Study; completing the Social Environmental Impact Assessment; as well as engaging with lenders.
"In addition, 2018 is an election year in Madagascar and we will be monitoring the political developments closely. Overall, I am pleased to see the significant progress made on the project and delighted with the ongoing positive cooperation with the Madagascan government." Mojapelo added.
Shares in Bushveld were down 3.8% Tuesday to 20.10 pence each.
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