Edenville Energy PLC - London-based developer of Tanzania's Brownfield Rukwa coalfields - Resumes full control of Rukwa coal project in Tanzania, terminating its contract with Nextgen Coalmine Ltd. "All mining equipment has been brought back into service by the company, whilst an additional pre-strip excavator has been added to the fleet," firm explains. Edenville is sourcing three additional trucks to scale production. Targets monthly sales of 5,000 tonnes of washed coal from the end of the third quarter of 2022. As comparison, Edenville sold 610 tonnes of washed coal over the three months between February 1 and April 30. Aims to maximise cash returns, reiterating "the attractive pricing forecast over the coming years".
In February, Edenville's subsidiary entered into the now cancelled contract with NextGen for the operation of the Rukwa coal project in Tanzania. Under the agreement, the contractor agreed to pay Edenville a royalty of USD10 per tonne of washed coal sold and a royalty of USD5 per tonne of any coal fines sold.
Current stock price: 20.30 pence, up 6.8% on Tuesday
12-month change: down 42%
By Tom Budszus; tombudszus@alliancenews.com
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