Perth-based explorer Lemur Resources has signed an agreement with the Madagascan government to explore the development of a coal-fired power station to power its Imaloto coal project.
Lemur today announced it had signed a memorandum of understanding with Madagascan government-owned electricity company, Jiro sy Rana Malagasy (Jirama), which currently produces and supplies electricity throughout the country by means of hydro-electric and diesel-fired power plants.
The MOU will see Lemur’s 99 per cent owned subsidiary, Coal Mining Madagascar, to launch feasibility studies in relation to building and supplying a coal fired station in the Imaloto coal basin, and, if the facility is financed and constructed, to supply excess electricity to Jirama.
Lemur said it was seeking to develop the coal-fired station to eliminate the risk of compromised electricity supplies for Imaloto from the existing plants, resulting from oil shortages or price risks.
“The electricity generated by the proposed power station will not only supply the general population with power, but it is likely to spawn significant development of a number of other proposed resource projects in the area and in the process, make a significant contribution to the Madagascan economy,” managing director Blair Sergeant said.
At 1:10PM (WST) Lemur’s stock was steady at 19.5 cents.
The coal explorer listed on the Australian Securities Exchange last month, after its $25 million initial public offering closed oversubscribed.
It is targeting measured resources of up to 700 million tonnes through its ongoing exploration programs at Imaloto, which is a big leap from the current 175 million tonne inferred resource.
