Aim-listed Edenville Energy experienced a major transition in the year ended December 31, 2022, in terms of operational, management and board changes, which has continued into the first half of this year.

The latest change involves Edenville entering into a major strategic funding agreement to conditionally raise £1.4-million, particularly from a new shareholding group that includes South Africa-based Q Global Commodities Group (WGC) and East African mining investment group Gathoni Muchai Investments (GMI).

Jason Brewer and Quinton van der Burgh are already in the process of joining the Edenville board as representatives from WGC and GMI, respectively.

Edenville chairperson Nick von Schirnding will resign from the board once Van der Burgh steps in as nonexecutive chairperson and director, while Brewer will be appointed as a director.

Von Schirnding comments in the company’s financial results for the reporting year that 2022 was a challenging period for Edenville, with tough decisions having needed to be made to continue delivering value to shareholders.

He is optimistic that this year will be a more successful and stable one for the company.

Some disruptions in the year included an agreement failing between Edenville International Tanzania and Nextgen Coalmine, which would have involved Nextgen operating the Rukwa coal project, in Tanzania. 

The agreement with Nextgen to this effect was terminated within three months on May 31, 2022, owing to a lack of progress, allowing Edenville to fully assume operating control of the project site and continue exploring improved economic arrangements for coal mining at Rukwa.

The second half of the year was dominated by several changes to the board, including the appointment of Noel Lyons as CEO, Paul Ryan as an executive director and Andre Hope as a nonexecutive director following the resignations of Alistair Muir, Jeff Malaihollo and Franco Caselli. It is also during this time that Von Schirnding assumed the role of nonexecutive chairperson.

On site in Tanzania, changes in operational management resulted in a more coordinated and dedicated workforce.

Edenville subsequently entered into a 12-month agreement with local mine operator Brahma Energies to operate the Rukwa mine as of August last year.

Von Schirnding confirms the agreement with Brahma was cost-effective and has been running smoothly.

On the production front, Lyons says output showed intermittent encouraging signs, particularly during periods of favourable weather and when the aged plant operated without major breakdowns.

“We also identified strong demand with the condition that a consistent supply can be assured having recently signed a supply contract with a Rwandan client for the supply of up to 5 000 t of washed coal a month.

“However, the intermittent and unpredictable operational performance significantly strains resources and hampers access to regular and high-margin sales.

“Additionally, legacy issues, such as unmet production level expectations set with the mining commission, jeopardize the licence, and strained relationships with local service providers, suppliers and advisers, all impact day-to-day operations and require a disproportionate amount of attention and resources,” Lyons states.

Owing to the change of local management in the second half of 2022 and the subsequent challenges, together with a lack of certain historic company documentation, some historic expenditure was difficult to verify and, while not material in the overall review of the group's activities, it is noted by the local auditors and in the auditor's report.

Lyons agrees with Von Schirnding that the new management team immediately enhanced all financial control procedures on their arrival in the company and these strict policies are adhered to throughout the company today.

Lyons notes that Edenville has emerged from the 2022 financial year stronger, with valuable new investors that bring extensive expertise, finance and experience in the mining business to the company.

The investors, together with a solid board, put the company in good stead for an “exciting” second half of 2023 and beyond, he concludes.