Latest News

Edenville Energy surges as trial mining starts at Tanzania project on significant coal-supply interest

Shares in Edenville Energy PLC  (LON:EDL) surged higher after it said it has started trial mining at the Rukwa Coal Project in Tanzania after it has received “significant formal interest” from several companies for long-term coal supply.

Edenville said as a result of the interest, seen over the past several months, trial shipments of mine coal have been transported to customers in order to determine appropriate logistical, quality and quantity parameters, with commercial rates being paid for the coal.

Consequentially, the AIM-listed company said it has taken the decision to move the project, which is near Sumbawanga in western Tanzania, to the next stage of development, which focuses on the commencement of commercial mining operations and the acquisition of a coal processing facility. 

The firm said it is planned that initial mining will commence in Q1 2017.

Rufus Short, Edenville’s CEO said: "I am very pleased we have been able to reach the stage where we are confident there is a long-term market for the coal from Rukwa.

“Our goal is to move our asset into generating positive cash flow in the near-term and to become a key supplier of coal in the East Africa region. Production will take place alongside the continued advancement of the planned coal to power project."

Edenville was the London market’s top riser in late afternoon trading, leaping over 80%, or 0.355p higher to 0.79p.

Open an Account

If you are interested in opening an account with Optiva Securities, please fill in the details on the apply button.