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Real Economy News in Real Time
R/€ = 15.94 Change: -0.20
R/$ = 13.54 Change: -0.14
Au 1281.21 $/oz Change: -3.79
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Lemur outlines benefits of proposed Madagascar coal project

19th June 2017 BY: Anine Kilian
Contributing Editor Online

JOHANNESBURG (miningweekly.com) – Aim-listed Bushveld Minerals subsidiary Lemur Resources expects its proposed integrated coal-fired power project in south-western Madagascar to contribute some $30-million a year to the country's economy.

Further, the proposed project is exepcted to inject some $300-million of foreign direct investment over three years.

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Lemur has invested over $10-million in the project, which is currently in the feasibility stage, undergoing a detailed design. Phase 1 of the project comprises a 136-million-ton coal mine, a 60 MW coal-fired power plant and over 200 km of transmission line.

In March, Lemur finalised a memorandum of understanding (MoU) with Chinese State-owned hydropower company Sinohydro to cooperate on a technical – and potentially financial – basis.

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Under the terms of the MoU, Sinohydro will be the engineering, procurement and construction partner, as well as the operations and maintenance partner.

The MoU will also provide the two companies the opportunity to explore debt financing and equity participation options with Power China, another Chinese State-owned entity, as well as other Chinese funders.

In May, Lemur completed a joint technical project site visit with Sinohydro, which marked the final stages of work before the start of the construction phase, which was subject to financial close, currently expected within the next 18 months.

Apart from providing affordable and reliable power to the people of Madagascar, this project will provide about 1 700 direct jobs, which will indirectly impact over 13 000 people economically, in the poorest region in the country, within the next three years. 

EDITED BY: Samantha Herbst Creamer Media Deputy Editor
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