Bushveld Minerals Limited (LON:BMN) is ready to push on with the development of its Imaloto coal power project in Madagascar in the second half of the year.
The company’s coal and energy subsidiary, Lemur Holdings, signed a 30-year concession agreement with the Madagascan government last month, which gives it the right to build, own, operate and supply an initial 60 megawatts in Imaloto.
'Critical milestone'
Earlier this month, a draft bankable feasibility study was submitted by Lemur’s technical partner Sinohydro, which Bushveld is currently reviewing.
A power purchase agreement with state-owned utility JIRAMA was amended, allowing it to take up to 25 MW offtake, while an inception site visit for social and environmental impact assessment (SEIA) was also completed during the second quarter.
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“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,” said Bushveld chief executive Fortune Mojapelo.
“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.”
Busy H2 planned
Key objectives for the second half of the year include progressing the SEIA study and finalising the bankable feasibility study with Sinohydro.
Project funding and procurement discussions are also high on the agenda.
“Overall, the Imaloto project is on track to deliver electricity to south western Madagascar by 2021,” concluded the operations update.
Bushveld shares rose 3.1% to 23.0p on Wednesday morning.