Edenville Energy Plc (AIM: EDL), the AIM quoted company operating the Rukwa Coal Project in southwest Tanzania, is pleased to provide an update regarding the Company’s Rukwa Coal Project (“Rukwa” or the “Project”).
As the Company has previously reported, following the induction of the new President in Tanzania there has been considerable positive sentiment in the country, which appears to be translating into business confidence and action. In addition, the increase in the steaming coal price, which has more than doubled over the past 12 months, to its current level of in excess of US$130 per tonne (August 2021 price for South African Richards Bay FOB), is bringing Rukwa production into focus, particularly from potential customers in other East African states.
Against this backdrop the Company is pleased to confirm the following:
- That it has received an order of up to a possible 3,500 tonnes per month of washed coal, although it is expected that this will result in an average monthly delivery of at least 2,000 tonnes per month, with deliveries commencing at that level in September 2021.
- It has an ongoing order of 600 tonnes per month of washed coal to one of its anchor tenants, however due to issues with the customer’s plant there will be a delay in recommencing deliveries until later this year.
- Previously the Company announced a trial export shipment of 480 tonnes of washed coal to a customer in East Africa. The customer is satisfied with the sample provided, but has requested an alternative sample sizing for further testing. Subject to satisfactory performance, and an order being placed, a total requirement of up to 3,000 tonnes per month of washed coal has been indicated from this customer.
- Efforts have focused on short term contract opportunities, but with discussions with the Tanzanian Government on power station supply options planned for September 2021.
For the next month the Company expects to sell a total of approximately 2,000 tonnes of washed coal, with sales increasing towards 3,000 tonnes a month over the next few months, without including any additional orders. The Company will continue to pursue additional supply opportunities to augment orders already received, including supply opportunities to customers in neighbouring East African countries.
In addition, as previously announced, the Company continues to review additional opportunities, following its recapitalisation earlier this year.
Further announcements will be made as appropriate.
Alistair Muir, CEO of Edenville, commented:
“It’s pleasing to see this turn around in business activity and we look forward to seeing further growth in sales over the next few months. The recent increase in coal prices out of South Africa would suggest there will be significant opportunities to sell our washed coal into the East African states.”
For further information please contact:
Edenville Energy Plc
Jeff Malaihollo – Chairman
Alistair Muir – CEO
+44 (0) 20 3934 6630
Strand Hanson Limited
(Financial and Nominated Adviser)
+44 (0) 20 7409 3494
Brandon Hill Capital Ltd
Oliver Stansfield, Jonathan Evans
+44 20 7936 5200
IFC Advisory Limited
(Financial PR and IR)
+44 (0) 20 3934 6630