(Alliance News) - Edenville Energy PLC said on Tuesday its production performance at Rukwa project improved last month amid better weather conditions.
The London-based thermal coal developer, focused on Rukwa coalfields in western Tanzania, said 594 tonnes of coal were washed at Rukwa in March. Of this, 512.5 tonnes of coal were washed from March 20 to March 31 due to "improved weather conditions and operational performance", Edenville said.
This comes after the company said last month that rain in Tanzania had affected production, as the wash plant was only able to operate for around four hours per day instead of the full eight-hour shift on multiple occasions.
Looking ahead, Edenville expects washed coal figures to be volatile for the remaining of April, but said it is "encouraged" by recent results following the end of rainy season. The company said it will be in a position to deliver its target of 2,000 tonnes of washed coal per month at USD98 per tonne from June.
Edenville added that it is thinking about building an additional wash plant in Rukwa to produce an additional 8,000 to 10,000 tonnes per month of washed coal.
Chief Executive Officer Noel Lyons said: "Performance at Rukwa during the second half of March was much improved and suggested we have the potential to achieve our initial and contracted base case production target of 2,500 tonnes per month once the rainy season concludes. Confirmation that when the plant is able to operate it is doing so at a rate that will achieve these levels of production is very encouraging."
Shares were up 12% at 5.45 pence in London on Tuesday late morning.
By Sabrina Penty; Alliance News reporter
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