# Edenville Energy focused on materially increasing production

- Link: https://www.directorstalkinterviews.com/edenville-energy-focused-on-materially-increasing-production/4121063121
- Published: 2022-05-05T07:13:47+01:00
- Author: Amilia Stone

**Edenville Energy Plc **(LON:EDL) has provided an update on operations at its 100%
owned Rukwa coal project in Tanzania.

From 1 February 2022 to 30 April 2022, 610 tonnes of washed coal was sold and 453
tonnes of fines were sold ex-stockpile. Little Run of Mine coal was mined given 
the period covered the end of the rainy season and delays in the full operational
handover to the new contract miner. The Company believes the operational issues 
impacting production are being addressed, or will be so in the near term, enabling
the Company to focus on achieving its targeted production rates. The Company continues
to see growing demand for its coal, at increasingly favourable prices, with a number
of buyers keen to enter into offtake agreements upon confirmation of stable production
and surety of supply from operations.

The contract mining agreement announced on 3 February 2022 placed the production
and operational costs on the contractor and accordingly whilst the Company has not
to-date benefited from material revenue generation, its existing cash resources 
have largely been maintained. This has ensured the Company remains in a healthy 
financial position as it continues to review additional investment and operational
opportunities. At the same time, the Company is in discussions with its contract
mining partner to ensure that the Company’s operations at Rukwa are progressed on
a timely basis.

> **Alistair Muir, CEO of Edenville Energy, commented:** “Rukwa has the potential
> to produce significant free-cash to Edenville from its operations, particularly
> in the global coal pricing environment. Whilst we are yet to witness the economic
> benefits in a material way, by entering into a contracting arrangement we have
> largely mitigated the direct financial liabilities during this period of transition,
> enabling us to conserve our cash and focus on future transactions. As we move 
> into a long dry season, we are focused on materially increasing production and
> believe we will be successful in delivering on this objective.”

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