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【Ferro-alloys.com】：Aim-listed Tanzania coal miner Edenville Energy has assumed full control of the Rukwa coal mine and its operations, after its contract mining agreement with Nextgen Coalmine was terminated on May 31.

Prior to this, Edenville entered into discussions with Nextgen Coalmine to vary the contract for the operation of the Rukwa coal project that was entered into on February 3.

Following the termination of the contract, all mining equipment has been brought back into service by Edenville, while an additional pre-strip excavator has been added to the fleet.

Up to three additional trucks are also being sourced to rapidly scale up production.

Edenville believes there is sufficient demand based on its existing order book and recent discussions with potential customers to sell any coal that is produced at Rukwa.

As such, the company’s initial goal is to satisfy existing demand from local customers of 1 500 t of washed lump coal product and 500 t of coal fines in the immediate future, targeting sales of 5 000 t a month of washed coal late in the third quarter of this year.

Edenville also wants to continue targeting coal fines sales, with the possibility to ramp these up.

Edenville CEO Alistair Muir says the agreed termination of the agreement with Nextgen will enable Edenville to take advantage of the recent macroeconomic changes that have made the economics of the Rukwa project considerably more attractive.

“The company is determined to maximise cash returns in the current global coal environment, especially given the attractive pricing forecast over the coming years.

“To this end, Edenville has already started applying a modest proportion of its existing cash resources towards expanding the Rukwa operations to meet this heightened demand. I look forward to making further announcements in due course.”

Meanwhile, Upendo Group’s current 10% economic interest in the Rukwa joint venture, which holds the licences governing the project, has been transferred to a 10% direct holding on the principal production licence.

In this regard, Edenville remains in discussions with its legal advisers regarding the validity of the transfer and consequences thereof. 

• [Editor:Alakay]