Rufus Short, CEO of Edenville, commented: “We are extremely pleased and encouraged with the test results to date. The results show and confirm suitable coal quality and very high yields will be available for the Rukwa Coal to Power Project and give us great confidence in the economic viability of our coal deposit to produce power for Tanzania. Importantly, the results indicate we can maximise the value of the insitu coal and there will only be moderate treatment costs incurred to prepare the coal for use in the power generation process. This is likely to have a positive flow through impact on all areas of the mining operation, enabling the project to maximise its economic potential and minimise both capital and operating costs for the mine.
“Edenville is primarily a mining and resources focused group and we are working alongside organisations whose speciality is power development and generation to take this opportunity towards its full potential. We look forward to further updating our shareholders in the near future, particularly with regard to the further test results and the potential suitability of our coal for near term sale to the local market.”
Edenville Energy plc (AIM:EDL), the Company developing an integrated coal to power project in western Tanzania, has told DirectorsTalk the first set of results the Company has received from SGS Laboratories in relation to the recent bulk sampling programme carried out on the Mkomolo and Namwele deposits and detailed in the Company’s announcement on 27 September 2016.
Key Points
-- Results from seam MK2 confirm coal as suitable for the provision of power plant feed;
— Only moderate, or in certain cases, no washing, will be required for Rukwa coal to be used in the combustion process in a coal fired thermal power plant;
— Where washing is required, high yields of approximately 75% are confirmed as achievable to produce a power plant feed product;
— The results from the sampling and wash tests both support and validate the recently constructed financial model and resource technical assessment;
— Applying a greater level of washing to this seam, produces a product above 20MJ/kg which offers scope for supply into the local and regional markets; and
-- Further test results on the other Mkomolo near surface coal seam are expected shortly.
The results from seam MK2 confirm the coal is well suited for use in thermal power generation and this data will form a crucial part of the process going forward to design and construct a coal fired power plant at the Rukwa project site.
Both raw and washed values indicate the coal is suitable for power generation purposes and any washing of the coal will primarily be to optimise and maximise the technical and economic parameters. Moderate treatment of the coal will produce a fuel that is optimum for the combustion process and maximise the tonnage available.
This coal is accessible at surface which will result in both low mining costs and the deposit being able to be opened up in a short timeframe.
Additionally, the results are consistent with our recently completed resource technical assessment as announced on 1 November 2016, to determine the available coal resources for an expanded project greater than 120MW. Subsequent to the wash results, the Company can now confirm the suitability of this coal to provide a sustained and reliable fuel supply to a power plant project. Combined with the recent analysis carried out on available coal resources, we can now provide a high degree of validation around the coal deposit at Rukwa.
Technical Details
The bulk sample behaved in a way our previous modelling had predicted and produced results which indicate only moderate or in certain circumstances no washing would be needed to result in a product suitable for use in the power generation process. These bulk sampling and wash results now underpin the power plant design process and will provide validity to the project in order to progress through both technical and financial requirements.
Sample MK2 which lies in the southern end of the Mkomolo deposit produced raw unwashed values as shown in Table 1.
Table 1 Raw Coal
Inherent Volatile Fixed Calorific Total
Moisture Ash Matter Carbon Value Sulphur
---------- ----- --------- -------- ---------- ---------
% % % % MJ/kg %
---------- ----- --------- -------- ---------- ---------
3.5 50.6 17.2 28.7 13.5 1.4
---------- ----- --------- -------- ---------- ---------
Applying a moderate or partial wash to the raw coal based on a density of 2.1 the following product was obtained as shown in Table 2. The yield from this wash or “de-stoning” was high at 74%.
Table 2 Washed Coal
Inherent Volatile Fixed Calorific Total Moisture Ash Matter Carbon Value Sulphur ---------- ----- --------- -------- ---------- --------- % % % % MJ/kg % ---------- ----- --------- -------- ---------- --------- 4.0 42.6 20.1 33.3 15.7 1.4 ---------- ----- --------- -------- ---------- ---------
The resultant product is considered suitable for the combustion process and typical of many coals used in power generation worldwide.
All values have been calculated on an air dried basis.
Additional washing of this seam by applying a slightly greater wash based around a density of 1.7 produces a product above 20MJ/kg which offers scope for supply into the local and regional markets. The additional wash results from the other seam sampled at Mkomolo will give a more complete representation of the possible opportunities for short term supply to the local markets.
