Bushveld Minerals Limited (LON:BMN) has hailed significant progress at the integrated thermal coal mining and independent power project it is developing in Madagascar.
The company said its coal and energy subsidiary, Lemur Holdings, has completed the load, demand and transmission routing studies and has initiated discussions with the Madagascan government regarding the concession - described by Lemur's chief executive officer, Prince Nyati, as “a top priority for 2018”.
READ: Bushveld’s Lemur subsidiary secures anchor off-taker at Imaloto power project in Madagascar
The concession agreement is currently being reviewed by the respective parties' legal teams.
Bushveld said the social and environmental impact assessment has kicked off and that consultants have been appointed to support engagement with financial institutions interested in financing the project.
“The company is committed to progressing the Lemur project as an integrated coal mining and power project, a configuration that it believes is key to unlocking the significant value inherent in the project,” said Fortune Mojapelo, the chief executive officer of Bushveld Minerals.
“We believe the Imaloto Power Project is key for the south-western region of Madagascar. The design and location of the project would immediately increase the country's baseload power supply by approximately 15%, with the option to scale-up to supply more power to new electricity users in the region in the longer term," he added.
"I am therefore pleased to see significant progress made on the project - particularly now that it is in process of completing a bankable feasibility study. Moreover, I am delighted to note the positive cooperation with the Madagascan government as we advance discussions on the concession for the power project alongside the various studies that are an important part of the bankable feasibility study," Mojapelo concluded.