Feasibility Study

Feasibility Studies have been carried out to confirm the viability of developing an integrated open pit coal mine and mine mouth power plant at the Block VI Site by internationally recognised consultants namely SRK Consulting for the mine and Mott MacDonald for the power plant. The studies have confirmed that an economic mine is technically feasible and that the coal is suitable for power generation in a conventional power plant.

The Company appointed SRK Consulting UK Ltd to carry out a Technical Feasibility Study to support the development of an open pit mine in Block VI. The feasibility study built on the previous work carried out and defined in detail:

  • The topographic, geomorphological and geological setting of the Block VI project
  • The geology and coal resources
  • Mining methods and mine design
  • Hydrology and water management
  • Geotechnical analyses of the mine and waste dumps
  • Infrastructure requirements
  • Geochemistry
  • Environmental and social impacts and mitigations
  • Capital and operating costs
  • A financial and economic analysis

The report confirmed the viability of developing an open pit mine in Block VI that could supply a mine mouth power plant and potentially other markets such as the cement industry.

The Company appointed Mott MacDonald from the UK in 2012 to carry out a pre feasibility study to assess the potential to develop a mine mouth power plant in Block VI to utilise the coal produced from the mine.

The report examined the coal quality and reviewed the potential power plant types and configurations that could be suitable for use with the coal from Block VI. The report confirmed that the coal was suitable for both a Pulverised Coal (PC) Plant and a Circulating Fluidised Bed Plant (CFB) and that the latter would be the better option for a low calorific value fuel. A 2x300MW configuration was proposed.

The report detailed:

  • Site location, geology and water availability.
  • Coal specifications.
  • Plant design options, cooling options, and emissions
  • Plant layout
  • Performance modelling.
  • Interconnections and grid requirements.
  • Financial modelling.
  • Environmental and social risks, impacts and mitigation.

The report was updated in 2013.