Edenville Energy PLC Trial Mining Commences (0173U)
12 January 2017 - 9:30PM
UK Regulatory
TIDMEDL
RNS Number : 0173U
Edenville Energy PLC
12 January 2017
12 January 2017
EDENVILLE ENERGY PLC
("Edenville" or the "Company")
Trial Mining Commences
Edenville Energy plc (AIM: EDL) the company developing an
integrated coal to power project in south western Tanzania, is
pleased to announce that it has started trial mining at the Rukwa
Coal Project near Sumbawanga in western Tanzania.
Key Points
-- Trial mining commenced
-- Initial mine production planned to start in Q1 2017
-- Significant interest from several groups for the coal from Rukwa
Over the past several months Edenville has received significant
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 in order to determine appropriate
logistical, quality and quantity parameters. 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
commencement of commercial mining operations and the acquisition of
a coal processing facility. It is planned that initial mining will
commence in Q1 2017. This will focus on stripping the overburden
and the production of a ROM coal stockpile. In parallel, a suitable
coal wash plant is planned to be established on site.
Whilst some coal will be delivered unprocessed, as per customer
requirements, it is envisaged that the majority of coal will
undergo a degree of treatment through the wash plant to optimise
the product for different customers and maximise the potential
returns to Edenville. Initial mining operations will be under the
control of Edenville and the Company is well advanced in selection
of a suitable wash plant facility. The wash plant facility will
also be configured so as to be able to process coal for the planned
future power plant. More details on the above points and other
areas of the operation will be announced as appropriate.
Rufus Short CEO of Edenville Energy commented: "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."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further information please contact:
Edenville Energy Plc
Jeff Malaihollo - Chairman +44 (0) 20 7652
Rufus Short - CEO 9788
Northland Capital Partners Limited
(Nominated Adviser)
Gerry Beaney +44 (0) 20 3861
David Hignell 6625
Optiva Securities Limited
(Broker)
Jeremy King +44 (0) 20 3137
Graeme Dickson 1902
IFC Advisory
(Financial PR and IR)
Tim Metcalfe
Graham Herring +44 (0) 20 3053
Heather Armstrong 8671
This information is provided by RNS
The company news service from the London Stock Exchange
END
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