27th Jun 2019 10:36
(Alliance News) - Edenville Energy PLC on Thursday reported the commencement of mining at the new northern mining area of its flagship Rukwa coal project.
The coal project developer in southwest Tanzania said, following the completion of the work carried out on the haul road which runs from the plant to the northern area of Rukwa, mining has commenced.
Edenville said overburden has been removed to allow access to the coal seam and the coal is being progressively exposed for excavation and transport to the wash plant.
Batch processing of fine coal from the stockpiles through the pre-screen has produced encouraging results, the company said, which showed that 40% of the stockpiled fine coal can be reclassified as sized coal product, which will be available for washing or direct sale.
Looking ahead, Edenville said it remains in discussions with potential buyers of fine coal, whilst also exploring other opportunities available with regards to sales of fine coal.
"We will continue to push forward with the northern area which, coupled with the recent plant improvements we have made, should enable us to increase production," said Chief Executive Rufus Short.
"We believe Edenville is on track to become cashflow positive within the next ten months, targeting an initial washed coal production of 6,000 tonnes per month," added Short.
Edenville shares were trading 8.6% higher on Thursday at 0.06 pence each in London.
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