# Edenville Energy reaches agreement with NextGen and terminates Contract

- Link: https://www.directorstalkinterviews.com/edenville-energy-reaches-agreement-with-nextgen-and-terminates-contract/4121066815
- Published: 2022-05-31T07:31:59+01:00
- Author: Giles

**Edenville Energy Plc** (LON: EDL) has announced an update with respect to the 
operation of the Company’s Rukwa Coal Project in Tanzania.

As announced on 18 May 2022 the Company was in discussions with Nextgen Coalmine
Limited (“Nextgen”) to vary the contract for the operation of the Company’s Rukwa
Coal Project, entered into on 3 February 2022 (the “Contract”).  The Company is 
pleased to confirm it has reached an agreement with NextGen to terminate the Contract
and has subsequently resumed full control of the site and mining operations. 

Following the termination of the Contract all mining equipment has been brought 
back into service by the Company, whilst an additional pre-strip excavator has been
added to the fleet. Up to three additional trucks are also being sourced to rapidly
scale production. The Company’s initial goal is to satisfy existing demand from 
local customers of 1,500 tonnes of washed lump coal product and 500 tonnes of coal
fines in the immediate future, targeting sales of 5,000 tonnes per month of washed
coal late in Q3 2022, with coal fines sales also expected to continue and possibly
expand. The Company believes there is sufficient demand based on its existing order
book and recent discussions with potential customers to sell any coal that is produced
at Rukwa.

Additionally, further to the announcement on 18 May 2022 that Upendo Group Ltd.’
s current 10% economic interest in the joint venture, which holds the licences governing
the Rukwa Project, had been transferred to a 10% direct holding on the principal
production licence, the Company remains in discussions with its legal advisers regarding
the validity of the transfer and consequences thereof.

> **Alistair Muir, CEO of Edenville Energy, commented:** “The agreed termination
> of the agreement with Nextgen will enable the Company to take advantage of the
> recent macro changes that have made the economics of our Rukwa project considerably
> more attractive.  The Company is determined to maximise cash returns in the current
> global coal environment, especially given the attractive pricing forecast over
> the coming years.  To this end Edenville has already started applying a modest
> proportion of its existing cash resources towards expanding the Rukwa operations
> to meet this heightened demand. I look forward to making further announcements
> in due course.”

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