EDL.L Share News (EDL)

(ShareCast News) - Tanzania integrated coal to power project developer Edenville Energy announced on Thursday that it has started trial mining at the Rukwa Coal Project near Sumbawanga in the west of the country.The AIM-traded firm said that over the past several months, it has received significant formal interest from several companies for long-term coal supply.As a result, trial shipments of run-of-mine 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, the board assured.As a result, Edenville said it 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 planned for initial mining will commence in the first quarter of this year, and will focus on stripping the overburden and the production of a run-of-mine coal stockpile.A suitable coal wash plant is planned to be established on site alongside that.The company's board said that while some coal will be delivered unprocessed as per customer requirements, it envisaged the majority of coal undergoing 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 said it 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."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," said Edenville CEO Rufus Short."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."