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Bushveld Minerals completes first section of bankable feasibility study for Imaloto power station

Bushveld’s subsidiary, Lemur Holdings, is looking to build a power station in Madagascar, and a BFS for the power component of the project has now been completed

coal heap
Imaloto’s capacity will initially be 30MW before topping out at 60MW after phase 2 development

The end of last year was a busy period for Lemur Holdings – Bushveld Minerals Limited’s (LON:BMN) coal and energy subsidiary which is looking to build a coal-fired power station in Madagascar.

During the final quarter of 2018, Lemur completed the bankable feasibility study for the power aspect of Imaloto, which found that the project is feasible.

READ: Bushveld sees interest from lenders in Imaloto

The second part of the BFS, which is looking at the coal mine portion of the project, has been completed and a review of the final draft is being carried out.

“The completion and review of the Bankable Feasibility Study for the power component of the Imaloto Project represents a key milestone achieved as we press ahead in ensuring Lemur delivers on the potential of the Imaloto Project,” said Lemur chief executive of Lemur, Prince Nyati.

“The project's bankable feasibility study shows that the Imaloto Project is feasible and can deliver significant economic returns.

“More importantly, Imaloto is the most advanced Independent Power Project baseload project in Madagascar. It will have transformational developmental benefits for the country's southwest region, where the government has already implemented significant road infrastructure expansion.”

Attention turns to financing and EPC contracts

With the BFS now largely complete, Lemur is turning its attention to securing engineering, procurement and construction (EPC) contracts and is talking to solicitors who can draft and negotiate the agreements.

Lemur added that is now talking to solicitors who can draft and negotiate engineering, procurement and construction (EPC) contracts for the project.

Continued progress is also being made on the social and environmental impact assessment (SEIA) study, with final output expected in the second quarter of this year, once the wet season studies have been completed.

For the past year, Lemur has been in discussions with a “number of financial institutions” which might be interested in financing Imaloto.

One of these parties has now completed its due diligence and once the rest have, too, they will progress to finalise a term sheet on a syndicated project financing basis.

Shares rose 1.2% to 34.7p on Wednesday morning.

Quick facts: Bushveld Minerals Ltd

Price: 14.27499 GBX

Market: LSE
Market Cap: £164.59 m

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