AIM-listed Edenville Energy has appointed a consultant mining engineer and consultant process engineer to help progress the Rukwa coal project in western Tanzania.

Tanzania – To help with the next phase of development of the Rukwa coal project, Edenville Energy has appointed a consultant mining engineer, with over 20 years of experience in the resources industry, including 10 years in Africa, to oversee the mining development and efficient operation of the project.

He comes from a strong background of putting mines into production, developing and operating mines and materials processing operations in Africa, Australia, Europe and the UK.

Work has subsequently already begun on mining equipment selection, recruitment of operations personnel and planning of mining development.

To complement the mining engineer, Edenville Energy has also appointed a consultant coal processing engineer to oversee the construction and operation of the wash plant including importantly the training of local Tanzanians.

He is a degree qualified electrical engineer and has 12 years of experience in the construction and operation of coal washing plants. He is also experienced in operating coal laboratory facilities as well as holding qualifications for the use of heavy mobile plant.

Wash plant secured

As announced in February 2017, a coal washing plant has been secured and is currently being prepared for shipment to Tanzania.

The plant will be readied for shipment after the company’s forthcoming general meeting on 17 March 2017, during which resolutions to complete the acquisition will be sought. The wash plant is expected to be en route to Tanzania by early April, subject to available transportation and export requirements being met.

Once the plant arrives on site the estimated time for construction is six to eight weeks and commissioning will take place immediately following that. In the meantime, the company has access to a local, smaller scale, crusher to process its coal.

Interest from potential customers

Letters of intent (LOI) and expressions of interest have been received from several parties who intend to purchase coal from the operating mine on a long-term basis.

Subsequently, Edenville Energy is moving the project forward as quickly as possible to facilitate production to meet this demand.

At present no assurances can be given that these LOIs and expressions of interest will result in formal sales contracts, although the company is conservatively planning for firm orders that will result in initial sales in the region of 5 000 to 8 000 tpm, with the ability to increase production as appropriate.

The company is also working with interested parties to determine the product quality characteristics they require.

“The interest in our coal from several parties, which underpins our production plans and site development, will continue to gather pace as equipment arrives on site and the preparation for the wash plant is advanced,” says Edenville Energy CEO Rufus Short.

“Additionally the newly recruited mining and processing professionals mean that we have the right people to ensure our mining operations are appropriately developed and exploited,” Short notes.

Project background

The three coal deposits of MkomoloNamwele and Muze all lie within the Rukwa Coalfield. All three projects are controlled by Edenville Energy and sit in a cluster; Namwele and Mkomolo are adjacent and Muze lies just 12km to the east.

Edenville Energy has a 90% interest in these deposits through primary mining licences and the remaining 10% is held by the local partner on the project. Edenville Energy also controls the prospecting licences surrounding the primary mining licences, that have been obtained from the Tanzanian Ministry of Mines and Energy.