18 January 2017

Tanzania: Trial Mining Starts At Rukwa's Coal Project in Tanzania

Trial mining has started at Edenville Energy's 120 MW Rukwa coal-to-power project in Tanzania.

The project hosts 171-million tons of measured and indicated coal, sufficient to support a power station over a 30-year project life. Last year, Edenville received formal interest from several companies for long term coal supply. As a result, trial shipments of run-of-mine (RoM) coal have been transported to customers to determine appropriate logistical, quality and quantity parametres.

Commercial rates are being paid for the delivery of this coal. Consequentially, the company has taken the decision to move the project to the next stage of development, which focuses on the start of commercial mining operations during this quarter and the acquisition of a coal processing facility. Initial mining will focus on stripping the overburden and the production of a RoM coal stockpile. In parallel, a suitable coal wash plant will be established on site.

While some coal will be delivered unprocessed, it is envisaged that the majority of coal will undergo a degree of treatment through the wash plant to enhance the product for different customers and increase the potential returns to Edenville.

Initial mining operations will be under the control of Edenville and the company is well advanced in the selection of a suitable wash plant facility. The wash plant facility will also be configured to process coal for the planned future power plant.

"I am very pleased we have been able to reach the stage where we are confident there is a long-term market for the coal from Rukwa. Our goal is to move our asset into generating positive cash flow in the near term and to become a key supplier of coal in the East Africa region.

"Production will take place alongside the continued advancement of the planned coal-to-power project," said Edenville CEO Rufus Short.

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