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Edenville affirms commitment to Rukwa project

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World Coal,

Edenville Energy has reaffirmed its commitment to the Rukwa coal project in western Tanzania in a recent strategy update. The project will see the development of a coal mine and 100 MW+ mine-mouth power plant.

“Edenville Energy has been encouraged by the progression of the new grid infrastructure programme and also by the Tanzanian government’s stated policy to include a proportion of coal-fired power in the electricity generation profile,” the company said in a statement.

The Tanzanian government published its Power Reform Strategy and Roadmap in June 2014, which committed to expand the country’s power generation capacity and transmission infrastructure over the next decade. Part of this programme will see the construction of a new power grid in western Tanzania, which is scheduled to pass within 12 km of the Rukwa project.

“The milestones achieved [over the past twelve months] have increased the understanding of the Rukwa coal project and its potential contribution to Tanzania’s Power Reform Strategy,” the company continued. “Amid challenging conditions for early stage mining companies, the directors believe that the company has made tangible progress […] and as such further commitment and investment to progress the Rukwa coal project is warranted.”

The company will now look to identify near-term revenue opportunities to help support the development of the project and relieve the company’s current reliance on external financing. “The company is in the early stages of identifying near-term revenue opportunities and will provide further updates as appropriate.”

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