4th Jul 2018 13:06
LONDON (Alliance News) - Bushveld Minerals Ltd said Wednesday its coal and energy subsidiary Lemur Holdings Ltd completed a Social and Environmental Impact Assessment at its power project in Madagascar.
Bushveld completed the "important milestone" at its Imaloto Power Project in the second quarter and was the first in a series of visits from environmental consultants that need to be completed.
The SEIA work "remains on track" and Bushveld expect it to be completed by the fourth quarter of 2018.
A draft bankable feasibility study for the project was submitted by Lemur's technical development partner, Sinohydro, in the period and is currently being reviewed by the company. Bushveld said the study is a "critical consideration" for the funding phase.
Bushveld amended its power purchase agreement with state-owned utility company Jiro sy Rano Madagascar to allow the utility up to 25 megawatts offtake from 10 megawatts.
In the period, Bushveld announced 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.
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.
Chief Executive Officer Fortune Mojapelo said: "Notwithstanding Bushveld Minerals' focus on its flagship vanadium platform, the company is committed to deliver on the value of the Imaloto Power Project by completing the milestones that were set out for this year in order to supply affordable, high quality baseload energy in southwest Madagascar. The granting of the Concession Agreement during the quarter is a critical milestone for the project, aligning its development with the national government's broader plans.
"We are also pleased that the draft of the bankable feasibility study was submitted by our technical partner, Sinohydro and is currently under review. Once finalised, the study will provide a more precise picture of the project's cost and timeline for our ongoing discussion with lenders."
Shares in Bushveld Minerals were up 3.8% Wednesday at 23.20 pence each.
Related Shares:
Bushveld Minerals