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Edenville Energy Update on Rukwa Coal Project in Tanzania

Coal News - Published on Tue, 13 Oct 2020

Image Source: Edenville Energy Rukwa Coal Project
AIM quoted Edenville Energy Plc operating the Rukwa Coal Project in southwest Tanzania has provided an update. The Rukwa mine has been operating since operations recommenced on 3 August 2020 and continues to fulfil its pre-purchase orders. The Company successfully restructured its staffing requirements during the summer and can confirm that employee numbers on site have been reduced by circa 50%. No major production issues have been experienced.

As previously announced, the commencement date for the Company’s strategic partner Infrastructure and Logistics Tanzania Ltd to take over Rukwa operations pursuant to the Coal Mining Agreement was 1 September 2020. The CMA contains a provision for a mobilisation period of up to 60 days from the Commencement Date to ensure both ILTL’s equipment and personnel are at site. Both Edenville and ILTL have been working towards an earlier hand over date and had expected the transition to have taken place during September 2020. However, given administrative issues relating to work permits between the Tanzanian Government and ILTL, principally as a result of a backlog caused by Covid-19, the transition is now expected to take place during October, ahead of the 1 November 2020 deadline.

ILTL and EDL have continued to work closely since the last update, finalising the procedural aspects of the transition and identifying how to optimise operational efficiencies to increase production at Rukwa. ILTL has also been undertaking marketing and sales activities for Rukwa coal, as foreshadowed in the Sales and Marketing Agreement, with a number of positive developments with respect to additional contracts. These are expected to be formalised and announced following the transition.

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Posted By : Yogender Pancholi on Tue, 13 Oct 2020
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