London-listed energy and mining company Edenville Energy (AIM:EDL) has recently published an update regarding the Rukwa Coal Project in southwest Tanzania, anticipating that it expects to achieve a full order book over the next few months.
The company reports that following the recent induction of the new President of Tanzania Hon. Samia Suluhu Hassan and the lessening impact of Covid-19 there has been considerable positive sentiment in the region, which appears to be translating into business confidence and action.
This has been further supported by a new approach to the marketing of the company’s coal products. As a result of this, the company is anticipating achieving a full order book over the next few months.
In the event that the expected contracts materialize this would equate to some 6,750-8,750 tonnes per month of washed call and 1,000-1,200 tonnes per month of fines.
Edenville Energy has also recommenced discussions with the Tanzanian Government and recently been invited to submit an unsolicited proposal for the supply of coal to an on-site power station owned and operated by the Tanzanian Government.
Consistent with the positive sentiment in the region the company is working on a number of other supply opportunities in the East African region, for which further expansion of production capacity at Rukwa may be required.
The Rukwa Coal to Power Project
Edenville Energy was granted a mining license by the Ministry of Energy and Minerals of Tanzania in early 2016, to develop the Rukwa coalfields in the country’s southwestern region.
The Rukwa coalfields comprise the Mkomolo, Namwele, and Muze deposits, hosting 173 million tonnes of measured and indicated coal, sufficient to support a 120 MW coal-fired power plant for 30 years.
The Rukwa mine is currently producing up to 4,000 tonnes per month of coal for sale and the company is seeking to increase production up to 10,000 tonnes per month in the near term.
To date over 1,000 tonnes of coal have been transported with an expected ongoing demand of 1,000-1,200 tonnes per month. This material is being dug from existing stockpiles.
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