Edenville on track to turn positive cash flow early next year
Aim-listed Edenville Energy has decided to focus its efforts in the Northern Area of its Tanzania-based Rukwa project, owing to large coal measures and better-quality coal, while moving away from contractor haulage to owner-operated haulage.
In the six months ended June 30, the company started exposing coal at Rukwa’s Northern Area and upgraded its coal wash plant.
“The completion of the various upgrades to the wash plant are already providing greater recoveries, a reduction in consumables and should also enable greater throughput as mining operations continue to expand,” chairperson Jeff Malaihollo said on Friday.
Analysis of unwashed coal from the Northern Area in the period under review had returned energy values averaging 6 200 kcal/kg, with the highest sample being valued at 6 800 kcal/kg.
These energy values are significantly higher than those seen in previously mined areas around Rukwa, which averaged about 5 000 kcal/kg.
The higher-value coal enables the company to sell coal without the requirement to put it through the wash plant.
Additionally, large coal measures of about 20 m – and up to 40 m – in thickness, 4 m from surface, have been exposed in the Northern Area, compared with measures of about 3.5 m in thickness in previously mined areas.
“Mining that is now focused in the Northern Area delivers a lower strip ratio, improved economics and better-quality coal,” said Edenville.
Meanwhile, the company bought two 30 t trucks from original-equipment manufacturer Tata to use for mining load and haul, moving away from contractor haulage.
Edenville in September raised £300 000 by placing 600-million new ordinary shares, which should provide sufficient capital until the company’s cash flow turns positive from operations.
Malaihollo expected cash flow to turn positive during the first half of 2020.
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