Lemur Holdings

Lemur is wholly-owned subsidiary of Bushveld Minerals focused on coal projects. Lemur’s flagship project is the Imaloto coal project, located in southwest Madagascar. It consists of four exploration permits and one mining and exploitation permit covering a total area of approximately 81.25 km2.

The Imaloto coal project is an integrated coal-fired power project consisting of a 136 Mt coal mine, a 60 MW power plant and a new transmission line of over 250 km, developed in parallel as one of Madagascar’s leading independent power producers. The power plant is scalable from 60 MW and the transmission line is expandable up to 500 km.

The Imaloto Power Project has a total of 136 Mt JORC-compliant mineral resources, of which 92 Mt is in the measured and indicated category. In addition to a fully executed mining exploitation license, Lemur has two exploration permits covering a combined 87.5 km2 in close proximity to the Imaloto Power Project. Since 2008, Lemur has invested in excess of US$10 million on developing the project.

From a geographical location and development phase perspective, the Imaloto Power Project is perfectly positioned to address the persistent power supply challenges that Madagascar faces as a country, particularly in the least developed but mineral-rich southern region. The southern region currently does not have a power grid and is almost entirely electrified by isolated generators, with a combined capacity of no more than 20 MW.

The Imaloto thermal coal fired power station will be located next to the coal mine, thereby providing a captive market for the Imaloto Power Project RoM coal and unlocking the intrinsic value in the underlying project. In addition to substantially increasing the generation capacity in Madagascar, the initial 60 MW capacity of the Imaloto Power Project will create the basis for a power grid for the southern region.

Since a technical cooperation agreement was signed Sinohydro in 2017, Sinohydro has completed the BFS for both the power plant and the transmission line. Our studies to date indicate that the Imaloto Power Project tariffs will be more aligned with international benchmark tariffs of newly-built power plants in the sub-Saharan African region. These tariffs are substantially lower than the current electricity supply in Madagascar, which retails at between US$0.25/kWh and US$0.50/kWh.

In addition to the development co-operation agreement with Sinohydro, Lemur has secured a 30-year Independent Power Producer concession from the government of Madagascar. Lemur has also concluded a 30-year Power Purchase Agreement for an initial 25 MW from JIRAMA, the state owned utility.

Apart from JIRAMA, Lemur is concurrently in discussions with various private mining and industrial companies for potential offtake from the power plant.

The Company is in advanced discussions with a number of mining and services companies regarding strategic partnerships in contract mining and coal processing services.

The plant commissioning date is expected in 2022, subject to approvals and financial close on approximately US$200 million of funding.

Project highlights

  • Signed MOU with Jiro sy Rano Malagasy (JIRAMA) the State Utility to negotiate a Power Purchase Agreement (PPA) – 2011
  • Letter of commitment from the government of Madagascar to proceed with development of power project – 2012
  • Completed power generation and transmission pre-feasibility studies – 2012
  • Signed a 30-year PPA with JIRAMA, the state owned utility, which has enhanced the bankability of the project – November 2017
  • Commenced SEIA study – May 2018
  • Concluded a concession for the power project with the Madagascar government – May 2018
  • Commenced mine feasibility study – July 2018
  • Submitted Social Environmental Impact Assessment Terms of Reference to Ministry of Environment – September 2018
  • Signed transmission and connection agreement with JIRAMA – September 2018
  • Completed power Bankable Feasibility Study (BFS) – January 2019
  • Secured Development Bank of Southern Africa (DBSA) project preparation funding of $1m – March 2019

Lemur is currently in formal discussions with financial institutions for capital financing for the construction phase

 

The PQ Iron & Titanium Project

The PQ Iron & Titanium Project (“PQ Project”) is a multi-commodity project based on the same licence area as Mokopane, located 45 km north-northwest of Mokopane town in Limpopo Province, South Africa. The PQ Project has a JORC-compliant Inferred and Indicated Mineral Resource of 955 Mt with an average grade of 33.7 per cent Fe and significant TiO2 (over 18 per cent TiOin magnetite concentrates). The project boasts some of the highest in-magnetite grades of titanium in the world and could be developed as a titanium and pig iron project in the long run, depending on the evolution of low capital-intensive methods for processing the ore. To this end, the Company is following with interest advances in metallurgical processing used for similar deposits and exploring partnerships with technology partners. No further work is planned on the project at this stage. Bushveld Minerals owns an effective controlling interest of 64 per cent.

 

The PQ Phosphate Project

The PQ Phosphate Project immediately overlies the iron ore and titanium resource of the PQ Project. The Company reported on 3 June 2014 a maiden phosphate resource statement for the PQ deposit of 442 Mt, with average phosphate grades of 3.6 per cent P2O5 . Although the grades are low, the PQ Phosphate deposit is in the immediate hanging wall of the PQ Project and would be mined concurrently with the stripping of the latter. Of particular interest is that laboratory-scale test work has shown that 37 per cent P2O5 concentrate grades are achievable from this deposit. Progress to date has been limited to understanding the economic parameters necessary for success and how the project can be configured in line with the Company’s approach towards developing projects. No further work is planned on this project while the Company advances its vanadium platform. Bushveld Minerals owns an effective controlling interest of 64 per cent.

 

Afritin Mining Limited

The Company holds a 9.50 per cent shareholding in AIM-listed AfriTin Mining Limited, an African Mining company with a portfolio of near-production tin assets in Namibia and South Africa, which was demerged from Bushveld Minerals in November 2017.

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