LONDON (Alliance News) - Edenville Energy PLC on Tuesday said it has completed its current bulk sampling programme at the Rukwa coal-to-power project in Tanzania.
Coalfield developer Edenville said that under this programme around 20 tonnes were extracted from open pit areas at three different locations in Mkomolo and Namwele. The material has been processed according to Tanzania export regulations and is currently being shipped to SGS Laboratories in Johannesburg, South Africa.
Edenville noted that the sampling showed "extensive near-surface coal" which it said can enable rapid and low-cost development of the mining operation on a commercially viable basis. This, Edenville said, can be done in conjunction with the development of the mine-mouth power generation.
"The Rukwa project already has a mining licence and environmental certificate in place and we are working on options to assess the financial viability of a Phase 1 operation to place the project into commercial production. As such we are in advanced discussions with several parties connected with both extraction of the coal and sales of the product and will update our shareholders at the earliest opportunity," said Chief Executive Rufus Short.
"Early mining of the deposit will also provide 'proof of concept' for the coal fuel source component of the company's coal to power project and provide further reassurance beyond the 173 million tonnes of Joint Ore Reserves Committee compliant resource that we have," Short added.
Shares in Edenville were up 15% at 0.478 pence on Tuesday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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