JOHANNESBURG (miningweekly.com) – Aim-listed Edenville Energy will, in the coming year, focus its activities on assessing the commercial viability of mining near-surface coal at its Rukwa or Mkomolo operations.
The company appointed South African firm Sound Mining Consultants to undertake a scoping study, which started last month, at the Rukwa operation.
“Should the outcome of the scoping study be positive, Edenville will review the options to develop a Phase I mining operation to supply coal into the local market,” executive chairperson Sally Schofield noted in a statement to shareholders.
She added that the company would, in parallel, aim to leverage the opportunities that would arise, owing to its strategic geographical location with respect to the Tanzanian government's proposed North–South Electrification Project.
Edenville believed its Rukwa project was ideally located to provide power for a new power line that would be constructed to link the north of the country to the south and service the western and north-western parts of Tanzania.
Although the timetable for construction of the power line had not yet been determined, Edenville had already defined a quantity of coal suitable for coal-fired power generation.
“We will continue exploring opportunities for potential business partnerships over the coming year,” Schofield noted.
“2013 will be a time of transition for Edenville. The resource statement gives us the clarity and confidence to embark on a new phase of activity, with the focus firmly on evaluating the commercial potential of our projects. Should the outcomes be positive then we have the opportunity to realise significant value for shareholders and southern Tanzania alike,” Schofield stated.