Bushveld Minerals Ltd. signed a memorandum of understanding with Sinohydro Corp. Ltd. to cooperate on the development of an initial 60-MW coal power plant and a 200-kilometer transmission line in southern Madagascar.
Bushveld said April 5 that it expects the coal fuel for the independent power producer to be sourced from the coal mining permit area in Madagascar held by its Lemur Holdings Ltd. unit.
Sinohydro will finance a bankable feasibility study and a project implementation proposal for the project within 12 months.
According to the release, Madagascar's power utility company, Jirama, is negotiating an off-take agreement with Lemur for electricity.
The project will supply electricity to existing mining and industrial operations in the region and to individual consumers, the company noted.
Sinohydro is a subsidiary of Power Construction Corp. of China Ltd.