Edenville Energy plc announced it was increasing mining and processing following site preparations at the Rukwa coal mine in Tanzania.
PRODUCTION
More than 400 tonnes of coal were processed during the last two weeks of September 2021, similar to the whole of H1 2021.
The company, which raised £2.475 million at the end of May 2021, aims to process 3,000 tonnes a month of washed coal in the current quarter.
SITE PREPARATION
Since the end of May 2021, Edenville has been preparing the site to meet the expected demand for Rukwa coal.
Work focused primarily on overburden pre-strip, with a total of 13,000 tonnes of material being removed in September 2021.
This has also provided access to coal from the Northern Zone of the Rukwa deposit.
DELIVERIES
The company already delivers to a long-standing customer and aims to supply a potential customer with 3,000 per month.
The existing processing facilities have a capacity of 12,500 tonnes per month.
ECONOMICS
Chief executive Alistair Muir said he appreciated the delay had been frustrating for investors.
“However, the company elected to take a prudent approach, firstly recapitalising the company and then ensuring operations and customers were in place before committing its resources to production.
“We believe the company is now well positioned to meet its internal production targets for the year end.
“Moreover, as additional customers are identified, Rukwa has the potential to expand operations further to meet this increased demand.
“Given the significant uplift in global coal prices, which have more than doubled during the last 12 months, we believe the economics and outlook for Rukwa have never been better.”