Edenville starts mining at northern area of Rukwa
Aim-listed Edenville Energy has started mining operations at the new northern area of its flagship Rukwa coal project, in Tanzania, and has also recorded a number of other recent project developments.
This start of mining follows the completion of the work carried out on the haul road which runs from the plant to the northern area.
Overburden stripping and exposing of coal has now started in the northern area.
The northern area contains thicker seams – up to 40 m thick in some areas and starting about 2 mm from surface – than those previously mined.
The directors believe the coal from the northern area has the potential to provide greater yields and better qualities than areas mined previously.
The wash plant has started batch processing of fine coal stockpiles through the pre-screen, enabling about 40% of the fine coal stockpiles to be reclassified as sized coal product, available for washing or direct sale.
Analysis of this screened, but unwashed coal, is returning values of about 5 000 kcal/kg.
The company remains in discussions with potential buyers of fine coal. Other opportunities available to it with regard to the sale of fine coal are also still being assessed.
“We are delighted to have commenced mining at the northern area following the receipt of proceeds from the recent placing,” commented Edenville CEO Rufus Short in a statement issued on Thursday.
He added the Edenville would continue to push forward with the northern area which, coupled with the recent plant improvements it has made, should enable the company to increase production.
“We believe Edenville is on track to become cash flow positive within the next ten months, targeting an initial washed coal production of 6 000 t a month, which we consider to be a breakeven level, increasing to more than 10 000 t a month thereafter.”
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