1st Jul 2014 07:45
LONDON (Alliance News) - Edenville Energy PLC Tuesday said its subsidiary Edenville International Tanzania Ltd has been awarded an Environmental Impact Assessment certificate, which approves coal mining at the Namwele and Mkomolo coal deposits near Lake Rukwa in Tanzania.
The African coal exploration and development company said the EIA, which was received on June 27, was signed by the Minister of State for the Environment and will remain valid during the entire life cycle of the project.
The company carried out extensive analysis of the regions over 2012 and 2013 before the EIA was submitted for approval in December 2013.
Edenville said the next steps towards mining the site is the completion of a feasibility study on the Rukwa coal-to-power project and the conversion of current prospecting licences and primary mining licences to full mining licences.
The achievement is a key milestone in the company's strategy to develop the Rukwa coal-to-power project which achieved an upgraded measured and indicated resource of 171 million tonnes of raw coal, with an additional 2 million tonnes in the inferred category, as part of a resource report announced in September 2013.
"Although the coal-to-power project remains our focus, the EIA approval also provides Edenville with the option to proceed towards a stand-alone coal mine development. We will continue to assess this and other options to achieve the best outcomes for our shareholders and the people of Tanzania and to ensure the project is developed in the most appropriate and viable manner," Chief Executive Officer Rufus Short said in a statement.
Edenville Energy shares were up 15% to 0.0750 pence, putting it amongst the top AIM All-Share risers during early trading on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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