https://www.engineeringnews.co.za

Edenville seeks to end contract mining arrangement with NextGen

18th May 2022

By: Marleny Arnoldi

Online News Editor

     

Font size: - +

Aim-listed Edenville Energy is in discussions with NextGen Coalmine to vary the existing contract mining arrangement the companies have on the Rukwa coal project, in Tanzania, and to potentially take back control of the operations.

Edenville believes this will enable the company to capture a larger percentage of future sales, either on a contract basis or direct operation basis.

The company entered into a contract arrangement with NextGen early this year; however, Edenville says it has yet to enjoy any material benefit from the contract mining arrangement, owing to operational issues, which it is seeking to address.

In the meantime, Edenville is assisting NextGen on the ground and with limited funding to allow operations at Rukwa to be increased on a timely basis.

The company confirms that it is working with urgency to get the situation sorted, since international and domestic coal prices have increased significantly, with there being heightened interest from customers to enter into offtake agreements for coal from Rukwa.

“Since entering into the agreement with NextGen, a number of things have changed on a macro level that have made the economics of Rukwa considerably more attractive. The company is determined to maximise cash returns in the current global coal environment, especially given the attractive pricing forecast over the coming years.

“Given its current financial position, Edenville now has capacity to expand operations organically and to meet this heightened demand,” explains Edenville CEO Alistair Muir.

Meanwhile, Edenville has also advised that Upendo Group’s 10% economic interest in the joint venture holding the licences governing the Rukwa project has been transferred to a 10% direct holding on the principal production licence.

This may require Upendo making contributions to operations going forward, to which Edenville is seeking clarification.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Vikela Aluvin (Pty) Ltd
Vikela Aluvin (Pty) Ltd

Complete range of security sealing solutions including security seals bags and labels.

VISIT SHOWROOM 
CSIR International Convention Centre (CSIR ICC)
CSIR International Convention Centre (CSIR ICC)

CSIR International Convention Centre (CSIR ICC) - the leading conference and events venue in Pretoria/Tshwane.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.065 1.246s - 140pq - 2rq
Subscribe Now