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Edenville eyes efficiency rally at Rukwa on rising demand

23rd November 2017

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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JOHANNESBURG (miningweekly.com) – Aim-listed Edenville Energy is reviewing options to further optimise the efficiency and throughput of its wash plant at the recently commissioned Rukwa coal project, in Tanzania, on expectations of greater demand beyond its planned output of 10 000 t/m.

The company started producing washed coal for sale in October, delivering on commercial terms to a number of customers in Tanzania and neighbouring countries following the completion of the commissioning and testing of the wash plant, which started late in September.

“These initial test shipments, currently totalling over 1 000 t, 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 t/m, which is targeted to be achieved by the end of January 2018,” Edenville said in an update to shareholders.

Edenville is considering an option to install a purpose-built prescreening mechanism to reduce the level of fine material that enters the plant, providing more capacity for the washing of sized coal.

Meanwhile, Edenville and its partner, Chinese State-owned hydropower engineering and construction company Sinohydro Corporation, have been meeting with Tanzania State-owned Electricity Company Tanesco about the way forward for the development of the planned mine mouth power plant at the Rukwa coal project site, in the Sumbawanga region.

“Several areas were covered, including the size of the project, the proposed structure of a power purchase agreement, tariff levels, and connectivity into the planned transmission line that will pass through the Sumbawanga region,” Edenville commented.

Further discussions and clarification between the parties could 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.

Edited by Creamer Media Reporter

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