Bushveld Minerals on track to launch Imaloto power station by 2021

Vanadium producer Bushveld Minerals is aiming to kick off a series of detailed conversations regarding a finance package for its Imaloto coal-fired power station project once it has wrapped a bankable feasibility study on the site.

Bushveld, which completed initial work on its study for the power station back in June, said it was still in the process of reviewing the information it collected from the Madagascan asset. The coal mine study was set to finish during the final quarter of the year.

The AIM-listed outfit, which has been developing the integrated thermal coal mining and power project through Lemur, its coal and energy subsidiary, told investors that social and environmental work was ongoing, but noted that connection and transmission agreements had been put in place with the national grid operator.

Bushveld also highlighted that an unnamed global mining company had expressed interest in an offtake deal and revealed that an offer of preparation finance had been received from a regional development finance institution.

Bushveld said: "Overall, the Imaloto project is on track to deliver electricity to southwestern Madagascar by 2021."

Chief executive Fortune Mojapelo said he had been pleased with progress at Imaloto, highlighting the level of interest seen from institutional lenders in regards to the construction phase of the project.

"We expect to advance discussions on terms of lending after the BFS is completed in Q4 2018," said Mojapelo.

As of 1050 BST, Bushveld shares had dipped 2.02% to 26.65p.