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Operational update on Edenville’s Rukwa coal project

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World Coal,

Edenville Energy Plc, the AIM quoted company developing a coal project in Southwest Tanzania, has provided an operational update for its flagship Rukwa coal project following on from the completion of the fundraise which was announced on 17 May 2019.

Plant upgrades

The company has reported that the majority of the planned plant upgrades have now been completed.

One of the key upgrades has been further modifications to the pre-screen, which was originally installed in January 2019. The initial introduction of the pre-screen, which removes hard to process material such as fine coal, has already resulted in a lower use of consumables in the main plant, such as magnetite. Going forward it will also enable a more efficient sorting of material prior to it entering the main wash plant circuit, which in turn has the potential to provide more coal for washing and a cleaner recovery as it travels through the plant. With this in mind, Edenville will now also look to process sections of the existing fines stockpiles, thereby recovering a significant amount of coal which can be washed. Finally, the company has now introduced a coal sizer at the start of the pre-screen to deal with any oversize material prior to it reaching the screen. The sizer is currently being assembled on site and is expected to be operational in July 2019.

A comprehensive spares package for the plant has also been put in place, with additional purchases made. These parts are now either onsite or due for delivery in the near-term. This should help prevent any significant downtime in the future in the event of machine failure.

Northern mining area

Road access to the new northern mining area is now in place. During June 2019, the company will upgrade the road in certain areas to provide an adequate haul route from the pit to the plant. Accordingly, mining is now expected to commence in the northern area in the coming weeks. The first coal deliveries to the plant from the northern area are scheduled for July 2019. In the meantime the company will continue mining the currently available pit area and processing the existing stockpile to produce washed coal.


The company is encouraged by the interest in its coal it has received over the last few weeks, with several potential new clients expressing a wish to purchase its washed coal. Although no assurances can be given that these expressions of interest will translate into formal contracts, the company’s directors are confident Edenville will be able to sell all the washed coal it produces in the medium-term to its existing and potential client base.

Notice of results

The audit of the company’s financial statements for the year ended 31 December 2018 is nearing completion and the company anticipates announcing its results shortly, and in any event no later than Friday 28 June 2019.

Rufus Short, Chief Executive Officer of Edenville, commented: “Having received the balance of funds in mid-May 2019 from our previously announced placing, Edenville has focused on the completion of certain upgrades to the plant as well as opening up the northern area. I am pleased to report these have either been completed ahead of schedule or remain on track for completion next month.

“I look forward to providing further updates over the coming months as the upgraded plant becomes fully operational and the company looks to increase production once the northern area is open. As previously disclosed the directors believe the coal from the northern area has the potential to provide greater yields than areas mined previously. We consider Edenville is on track to become cash flow positive within the next 10 months, targeting an initial 6000 t/month, which we consider to be a breakeven level, increasing to over 10 000 t/month thereafter.”

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