If you take a look at the coal stats in my last posting you can see that KIBO's Rukwa coal field consists of about 125 million tons of coal and EDL's coal field also in Rukwa consist of about 173 million tons of coal. EDL is almost a mirror image of KIBO although a bit further behind in its business plan. But still, both seem to have the same business project and outlook for their Rukwa coal and power plants. Even though EDL isn't as advanced as KIBO as far as how far down the line their business plan is, EDL holds over 40 million tons of coal more than KIBO. KIBO's sp is about 30x higher than EDL's but EDL holds more coal reserves and is intent on doing the same type of project as KIBO. So you have to ask yourself, which share would you rather be in? The one that is further advanced but with less coal reserves and a 30x higher sp? Or the one lagging a bit behind, but with the same plan, business model, more coal reserves and an sp 30x lower. Yes, KIBO has far less shares in circulation, but EDL still has more reserves, so can keep its power plant operational for many years past KIBO's. So it can generate more income. If EDL can get its finger out of its arse then it have the potential to deliver a very hefty payday to its shareholders
The Rukwa field in southwestern Tanzania has coal resources for a power plant that will inject 300MW to the national grid.
A preliminary definitive mining feasibility study by Kibo Mining Plc, which owns the field, shows that it can produce 120,000 tonnes of coal monthly. Kibo’s chief executive officer Louis Coetzee said the Rukwa power plant, which is expected to cost between $500 million and $700 million, will require 28.8 million tonnes of coal over 20 years — which is 48 per cent of the 60 million tonnes in the field. READ: Kibo picks financial adviser for Tanzania power project Tanzania plans to raise power output from 1,583MW in April this year to 10,000MW by 2025. Kibo and East-West Power Co Ltd of Korea signed a memorandum in July 2013 to develop the power plant. The project aligns Kibo’s interests with the Tanzanian government’s initiative to boost power production. The government is planning to build the western power line between Mbeya and Sumbawanga towns, with a transmission capacity of 400kV. It is expected to be complete in 2016. The transmission line will link the existing and future generation fields in south and southwest Tanzania to power demand centres in Mwanza and Arusha regions in the north. The line will pass near Edenville Energy’s Rukwa field. Edenville has been cleared to begin mining of coal for power generation and other industrial applications near Lake Rukwa. Its subsidiary, Edenville International Tanzania Ltd, has been certified to start mining coal deposits in Namwele and Mkomolo. Edenville plans to build a power plant at its Rukwa coal field which has 173 million tonnes of resources and is identifying investors who will participate in the project near Sumbawanga town in south western Tanzania.
I think enough has been said by myself and others about how wonderful the bod are. Let's just hope that I can eat my words this week and a ground breaking RNS comes out with huge Asia player on board with plenty of funding and some top notch engineering company to help build the plant. I'm off work tomorrow so will be watching this like a hawk in case it blows early on. Though more likely I will have a day of watching the sp paint dry. Still, we live in hope and as long as there is money in the bank it won't go bust just yet.
I doubt it. The board room is top heavy, they have consultants and pr company hanging on drip feeding money from here. They have been in discussions for a year with JV partner. Its laughable that after 4 years of holding the rukwa licence we are still only at this embryo point. It's very simple, many companies would love to get in on EDL's coal find so do a deal. 4/5 moths of research and legal checks then sign them up. Not edl though., 1 year on and a deal is still in the balance. Totally unacceptable, contemptible and amateurish on the bods side.
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