15th Apr 2015 07:58
LONDON (Alliance News) - Edenville Energy PLC saw its shares rise early Wednesday after it said it is now finalising the compilation of the necessary documents and data for a mining licence application for its Rukwa coal to power project in Western Tanzania and expects to submit the application in the second quarter of 2015.
It said its local advisors had told it that the timeline for approval of the application, once submitted, is about three to four months. Approval would give the company the right to commercially mine coal from the licence area.
The news comes after Edenville said last month that it got positive results from a power plant feasibility study at the license.
"I am very pleased with our progress since the release of the Power Plant Feasibility Study, 6 weeks ago. Moving to the Mining Licence stage will enable the project to be production ready to take advantage of opportunities in this rapidly growing part of Africa. Our progress through the Tanzanian regulatory system continues to move forward and we appreciate the solid support received from the Tanzanian Government for our Power Plant project," Chief Executive Rufus Short said in Wednesday's statement.
Edenville already has an environmental impact assessment for the project, a key component of the mining licence application. Sound Mining Systems of South Africa, which completed the 2013 resource report for the project, is working on technical aspects of the mine plan in order to complete the submission documents, the company said.
"The project would be one of only three in Tanzania with this type of mining licence to extract coal. The company's base case remains the development of the mine and power plant to operate as an integrated commercial entity as substantiated by the Power Plant Feasibility Study. There will also be the opportunity to sell coal to local and regional customers who may be interested," it said.
"In addition to work on the mining licence we continue to take part in necessary discussions and the supply of requested data to the relevant Tanzanian Government departments in order to move the process forward in connection with the power plant development," it added.
Edenville Energy shares were up 8.9% at 0.0490 pence early Wednesday, making it one of the best-performing stocks in the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
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