Edenville Energy PLC (LON:EDL), the company developing a coal project in southwest Tanzania, has today provided an update on the recently commenced commercial coal production and the Company’s coal-to-power project.
Following the start of washed coal production, announced on 9 October 2017, processed coal is currently being delivered on commercial terms to a number of customers in Tanzania and neighbouring countries.
These initial, “test shipments”, currently totalling over 1,000 tonnes, are to parties that have expressed interest in placing long-term coal orders with the Company, subject to finalising pricing and quality, that in total could exceed the initial planned output of 10,000 tonnes per month, which is targeted to be achieved by the end of January 2018.
In order to deliver product to meet this expected demand, the Company is reviewing options to further optimise the efficiency and therefore the throughput of the wash plant. Pre-screening of coal measures is currently occurring and the option is being reviewed to install a purpose built pre-screening mechanism that reduces the level of fine material that enters the plant providing more capacity for the washing of sized coal, which is our optimum product. Any investment in a pre-screening mechanism is expected to be undertaken using the Company’s current financial resources.
The Company has been working hard to ensure that all aspects of the project meet the local regulatory requirements. The project now has a fully government certified weighbridge that is being used for measurement of coal tonnages leaving the site. In addition, the project recently underwent a major inspection by 22 Tanzanian Ministry of Energy and Minerals (MEM) officials and the feedback we have had from this visit is positive. It is well supported as a venture which is expected to add both economic and social value to the local area. As previously stated the Company is endeavouring to employ local people wherever possible and the standard and professionalism of our employees is proving to be very high.
Coal to Power Project
The Company, along with its partner Sinohydro Corporation of China, has recently taken part in senior management meetings with Tanesco, the Tanzanian State Electricity Company, to agree on the route forward for development of the planned mine mouth power plant at the Company’s Rukwa Coal Project site in the Sumbawanga Region of Tanzania.
Several areas were covered including the size of the project, the proposed structure of a Power Purchase Agreement (PPA), tariff levels, and connectivity into the planned transmission line that will pass through the Sumbawanga Region.
Further discussions and clarification between the parties on these and other matters could then lead to a structured agreement between the parties to move the project forward in line with the planned construction by Tanesco of the transmission line and substation infrastructure at Sumbawanga.
The Company looks forward to providing further updates as appropriate.