Edenville Energy plc (AIM: EDL), the company developing a coal project in southwest Tanzania, has provided DirectorsTalk with an update on activities in connection with the Company’s recently established commercial coal production.
As stated in the announcement on 23 November 2017 the Company is supplying bulk preliminary orders for coal to clients in the East Africa region. These requests have now increased to several thousand tonnes and the Company is busy fulfilling this demand.
In parallel, the Company is in detailed discussions on contractual terms with several of these groups and others on potential orders that total over 10,000 tonnes of coal per month. One group is requesting a regular order of 5,000 tonnes per month, whilst two others are requesting 3,000 tonnes each per month.
If these discussions result in firm orders then monthly revenue to the Company is projected to be in excess of US$300,000, depending on the calorific value of the product taken, although there can be no guarantee that individual preliminary orders will result in long term contracts being put in place.
In anticipation of the Company’s planned increase in production, and as heavy wet season rains are affecting both production and transport logistics, the decision has been taken to initiate two shifts on the plant to help ensure production can be maximised. In addition, adjustments to the process and access to better, less weathered, coal in the mine has resulted in the finished coal product containing consistently high energy values. Washed coal values are averaging above 5,500GCV (Gross Calorific Value in Kcal/Kg) on an air-dried basis. We are confident as the pit expands and treatment techniques are further refined, that this coal quality can be built on and sustained.
Meanwhile, infrastructure continues to be developed on site, with, amongst other things, the test laboratory now installed and functioning.
