The Project

Africa Finance Corporation (AFC) is a Nigeria-based investment company focussed on perusing opportunities across the African mining, power and infrastructure sectors. In 2015 AFC was presented with an opportunity to provide equity investment for the development of a coal mining and power generation project in Zambia. AFC engaged Royal HaskoningDHV as a result of demonstrating the group’s extensive experience in coal mining projects; from geological assessment of resources, mine design and reserves through to full multi-discipline feasibility studies.

Royal HaskoningDHV’s mining services consultants were responsible for undertaking a technical due diligence of the existing feasibility study for the Kaputa Coal Mine project, located in the Maamba Coalfield of southern Zambia. The project involved a proposed opencast coal mine to solely supply a 300MW circulating fluidised bed boiler power station.

The Solution

The mining consultants were commissioned to undertake a review of the technical reports available for the project (including a competent persons report, feasibility study and technical mine plan report) and to subsequently comment on the viability of the proposed mining operation and its adequacy in supplying a power station.

The review included comment on

  • geological setting and exploration undertaken to-date
  • resource modelling, estimation and reporting, with comparison to international reporting standards
  • mining method and mine plan
  • mine scheduling, adequacy of equipment and reserve calculations, with comparison to international reporting standards
  • power station requirements including CAPEX and OPEX
  • coal crushing, hauling and stockpiling designs and
  • identification of key risks to the project

The Outcome

Following a review of available information AFC is provided with a concise report including Royal HaskoningDHV’s technical opinion and conclusions for consideration by AFC. Following completion of the report Royal HaskoningDHV provided ongoing advice and support to AFC, including attendance at technical meetings in South Africa, during consultation with the project owners - EMCO Coal Zambia – and original consultants of the feasibility study.

Ultimately, technical conclusions made by Royal HaskoningDHV were supported by forward looking recommendations for AFC’s potential investment as well as future development of the coal deposit.