Edenville Energy PLC Project update (2817X)
November 23 2017 - 1:00AM
UK Regulatory
TIDMEDL
RNS Number : 2817X
Edenville Energy PLC
23 November 2017
23 November 2017
EDENVILLE ENERGY PLC
("Edenville" or the "Company")
Project Update
Edenville Energy plc (AIM: EDL), the company developing a coal
project in southwest Tanzania, is pleased to provide an update on
the recently commenced commercial coal production and the Company's
coal-to-power project.
Coal Production
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.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further information please contact:
Edenville Energy Plc
Jeff Malaihollo - Chairman +44 (0) 20 7652
Rufus Short - CEO 9788
Northland Capital Partners Limited
(Nominated Adviser)
Gerry Beaney
David Hignell +44 (0) 20 3861
Jamie Spotswood 6625
Optiva Securities Limited
(Broker)
Jeremy King +44 (0) 20 3137
Graeme Dickson 1902
IFC Advisory
(Financial PR and IR)
Tim Metcalfe
Graham Herring +44 (0) 20 3053
Heather Armstrong 8671
This information is provided by RNS
The company news service from the London Stock Exchange
END
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