LONDON (Alliance News) - Edenville Energy PLC on Friday said representatives from the Tanzanian government and the state-owned energy business have paid a visit to the Rukwa coal-to-power project to discuss the next steps of development for the asset.
Rukwa is being progressed in two separate phases, one focused on the mining element which will extract coal to feed a power plant, the second part of the development, to supply power into the domestic market.
Edenville said senior representatives of the Tanzanian Ministry of Energy & Minerals and Tanzania Electric Supply Co Ltd (Tanesco) visited the site to advance power plant planning and documentation, including the power purchase agreement signed with the state-owned electric firm.
"Very positive and constructive meetings were held between Edenville's representatives and the Ministry of Energy & Minerals and Tanesco, with discussions focused on the next steps to occur in their process to take the project forward," said Edenville.
"Edenville is very encouraged by the considerable effort being placed on moving the project forward by both the Ministry of Energy & Minerals and Tanesco, and their commitment towards the development of it, and ultimately the generation of power, at the company's Rukwa site," the company added.
Edenville said the visit and discussions were both an "integral part" of moving the project forward and said it is now waiting for detailed documentation from authorities setting out the parameters for ultimate project development and power generation. Further meetings are expected to take place over the "coming weeks and months", it said.
The company will also be able to advance its discussions with companies that may provide engineering, procurement, construction and equipment to the project in the ope of signing a formal agreement.
Notably, "all the groups" that Edenville is speaking with have "the capability" to invest directly or indirectly into the Rukwa project.
In addition, Edenville said it is progressing other elements of the project, including the environmental impact assessment for the power plant. Edenville has already secured that assessment for the mining element of the project.
"All groups are working together to move this forward, and it is important to understand there is a process in place to move the development through the required steps needed, to result in power generation coming online," said Chief Executive Rufus Short.
Edenville shares were trading up 8.2% to 0.0230 pence per share on Friday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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