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Edenville Energy signs on coal marketing partner

Published by , Editorial Assistant
World Coal,

Edenville Energy plc, the company developing a coal project in south west Tanzania, has provided an update on coal marketing and construction at the company's Rukwa coal project site.

Marketing agreement

The company has announced that it has entered into a marketing agreement with a UK company with links to African energy and commodities trading. The Agent, which has been sourcing possible customers for Edenville's coal, wishes its identity to remain confidential at this time for commercial reasons.

Now that the start of production of washed coal from the company's onsite wash plant is imminent, it has allowed both parties to start to pursue advanced negotiations with groups who have shown an interest in the Rukwa coal. Over the coming weeks and months we will be developing those relationships with the intention to secure orders for Edenville coal.

The marketing agreement with the Agent has an initial timeframe of two years which can be renewed by mutual consent. Importantly, it is non-exclusive, and also allows Edenville to discuss and market our coal independently to other groups not introduced by the Agent.

The Agent will be responsible for introductions, liason and where appropriate, management of coal sales and delivery. They will be remunerated on a commission basis on completed sales.

Construction update

  • Onsite construction is continuing to advance rapidly. Since the last announcement on 25 August 2017 the coal screen has now been tested and is operational, having already processed coal from the mine.
  • The wash plant frame, drum and launder are now assembled on their concrete base and work is progressing on assembly of the remaining conveyors and infrastructure.

Rufus Short, Edenville CEO, commented:

"We are extremely pleased to have formalised our relationship with a group which has been actively using its relationships throughout East Africa to introduce our coal to end users. With the screen already operating and the imminent commissioning of the wash plant, the project is in a good position to provide processed coal to industry throughout East Africa. The team on site has put in great efforts to make up any lost time that was out of our control and construction is advancing rapidly. Additionally we are very encouraged by the coal starting to be exposed and I hope the we can fill a market niche for consistent quality coal shortly.

"We look forward to continuing to provide updates on the progress of the project in the coming weeks."

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