Edenville Energy provides Rukwa update

Highlights

• Mining and processing ramping up at Rukwa following site preparation.
• Over 400 t of coal processed in last two weeks of September 2021.
• Targeting processing 3000 tpm of washed coal in the current quarter.
• Significant global coal price increase has further boosted interest and economics.

Following the closing of the company’s £2.475 million capital raise at the end of May 2021, Edenville has been focused on preparing the site to meet the expected demand for Rukwa coal. This work focused primarily on overburden pre-strip, with a total of 13 000 t of material being removed in September 2021. This has also enabled a further 4000 t of run of mine (ROM) coal to be delivered to the existing wash plant stockpile. More importantly, it has now provided access on an ongoing basis to coal from the Northern Zone of the Rukwa deposit.

Following the overburden removal and the delivery of the remaining equipment and personnel necessary to recommence operations, during the second half of September 2021 the company was able to run over 400 t of coal through the wash plant. Mining and processing operations remain ongoing. The production achieved during the second half of September 2021 is already similar to the whole of 1H21, as detailed in the company’s interim results to 30 June 2021.

As previously announced, during 3Q21, Edenville received an order for up to 3500 tpm of washed coal, which the company believes will result in an average monthly delivery of at least 2000 tpm. The company’s focus is to bring operations to an initial rate of processing 3000 tpm of washed coal in the current quarter. This will enable the company to also satisfy an order of 600 tpm of washed coal from one of its long-standing customers, who has advised Edenville it would like to recommence deliveries from November 2021 following a COVID-related forced closure during 2021. In addition, following recent positive trial shipments, the company is in the process of providing further sample sizes to a potential customer in East Africa who has indicated a demand for 3000 tpm of washed coal upon confirmation of suitability. The existing processing facilities have a capacity of 12 500 tpm and accordingly the company is confident it will be able to satisfy any additional demand beyond the aforementioned orders.

Further discussions have also been held with senior advisors to the Tanzanian government during September 2021, with follow up meetings scheduled for October 2021. The company has long held the belief that Rukwa has the potential to help address the power supply deficit within Tanzania and looks forward to continuing the discussions later this month.

In addition, as previously announced, the company continues to review additional investment and operational opportunities, following its recapitalisation earlier this year.

Alistair Muir, CEO of Edenville, commented: “I am pleased to report operations are being ramped-up at Rukwa and I appreciate for many investors the delay has been frustrating. However, the company elected to take a prudent approach, firstly recapitalising the company and then ensuring operations and customers were in place before committing its resources to production. Those familiar with the company will note that the production achieved during the second half of September 2021 is already similar to the whole of 1H21, as outlined in the company’s recently released interim results to 30 June 2021.

“We believe the company is now well positioned to meet its internal production targets for the year end. Moreover, as additional customers are identified, Rukwa has the potential to expand operations further to meet this increased demand. Given the significant uplift in global coal prices, which have more than doubled during the last 12 months, we believe the economics and outlook for Rukwa have never been better.”

Read the article online at: https://www.worldcoal.com/coal/11102021/edenville-energy-provides-rukwa-update/