Coal mining has now started in the new northern mining area of Aim-listed Edenville Energy’s flagship Rukwa coal project, in Tanzania.
CEO Rufus Short on Thursday said that, as the project was developed further, the company expected significant quantities of coal could be extracted from the area.
“This, coupled with the plant improvements that have been made, should enable Edenville to become cashflow positive within the next nine months, as it targets 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,” he said.
The start of coal mining follows the overburden stripping and exposing of coal, the extraction of which has started. The main coal measures that have been exposed and are being mined in the northern area are collectively about 20 m thick, compared with coal measures of about 3.5 m thickness in previously mined areas.
According to Edenville, the coal measures appear consistent with only moderate amounts of material such as mudstone currently seen within the seam structure.
Edenville believes that a portion of this coal has the potential to be screened and sold unwashed, owing to its already high calorific value.
Further coal is also starting to be uncovered to the west of the already exposed coal measures within the Northern Area, which will be progressively uncovered in the future. For now, however, mining is concentrating on further opening up the coal measures, both north and south, along the strike of the coal in the Northern Area.
The wash plant is continuing to increase production from the low levels during the second quarter of this year, averaging 60 t a day of washed product produced from the original mining area, excluding any coal mined from the Northern Area, on a single shift.
Once sufficient material from the Northern Area is available, Edenville expects the wash plant to move back to a double shift basis.
In addition to increased throughput rates, the company believes the recent upgrades to the plant will result in less plant downtime and allow a more consistent production profile to be achieved at the project.