Edenville Energy Plc (AIM: EDL) is pleased to provide an update regarding the Company’s Rukwa Coal Project (“Rukwa” or the “Project”) in southwest Tanzania for the month of November 2021, as it continues to ramp up production.
November 2021 highlights
· 80% Increase in Run of Mine (“ROM”) coal production from October 2021 level
· 10% Increase in washed coal production from October 2021 level
· Approximately 1,000 tonnes of washed coal sales
· Orders of 3,600 tonnes of coal for December 2021 delivery confirmed from two largest customers
In November 2021, the Company mined 4,026 tonnes of ROM coal versus 2,240 tonnes in October 2021, representing an 80% increase. Approximately 1,125 tonnes of washed coal was processed through the Company’s wash plant, representing an increase of 10% from the October 2021 figure of 1,024 tonnes, which had benefited from historic stockpiles. A further 18,690 tonnes of waste was also moved, opening up greater access to the coal deposit for future mining.
November’s production would have been significantly higher had it not been for extended mechanical issues with the main excavator, which was unable to be used for mining for 15 days whilst initial repairs were made and it was subsequently used for the installation of culverts, and the clearing of drainage channels, to prepare the site for the wet season. These operations have been completed and the excavator has recommenced full mining operations. Assuming the excavator is operational throughout December 2021 the Company believes it should be able to improve substantially on November’s ROM coal production figures.
Approximately 1,000 tonnes of washed coal was sold during November 2021, with 200 tonnes remaining in stockpile. A combined order of 3,600 tonnes of washed coal has been reconfirmed by the Company with its two largest existing clients for December 2021, with the expectation of ongoing monthly orders of circa 3,600 tonnes per month thereafter. Discussions remain ongoing with respect to additional contracts with new potential customers. Further updates will be announced as appropriate.
Alistair Muir, CEO of Edenville, commented:
“November 2021 was both positive and frustrating. On the one hand ROM production continued to improve, but sadly operations were hampered by the excavator being offline for half of the month. The issues have been addressed and we look forward to continuing our progress on the mining front. As production becomes more stable we would expect to improve the recoveries from ROM to washed coal through the plant. Our sales book continues to improve and we are also now receiving unsolicited approaches from potential customers.”
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) 02 7409 3494
Brandon Hill Capital Ltd
+44 (0) 20 7936 5200
IFC Advisory Limited
(Financial PR and IR)
+44 (0) 20 3934 6630