UK-based Edenville Energy has commenced mining at the new northern mining area of its flagship Rukwa Coal Project.
Located near Sumbawanga in western Tanzania, mining commenced following the completion of a haul road that runs from the plant to the northern area, approximately 2km from the mining pit.
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According to the company, the northern area had thicker seams, in areas up to 40m thick starting about 2m from surface, than those previously mined.
Coal from the northern area has the potential to yield greater results than areas mined previously.
The company has also announced several other recent project developments.
The wash plant has commenced batch processing of fine coal stockpiles through the pre-screen, thereby allowing more than 40% of the fine coal stockpiles to be reclassified as sized coal product.
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By GlobalDataThis reclassified sized coal product will be available for washing or direct sale.
Edenville will deliver coal to buyers unprocessed while some will be available for washing.
Analysis of the screened and unwashed coal is returning values of approximately 5,000kcal/kg.
The results are an indication that the pre-screening process should be able to increase the coal available for washing by an amount comparable to the results achieved from the initial processing.
Currently, the company is in discussions with potential buyers of fine coal. It is still assessing the available options for the sale of fine coal from the Rukwa project.
Edenville chief executive officer Rufus Short said: “We will continue to push forward with the Northern Area which, coupled with the recent plant improvements we have made, should enable us to increase production.
“We believe Edenville is on track to become cashflow positive within the next 10 months, targeting an initial washed coal production of 6,000 tonnes per month, which we consider to be a breakeven level, increasing to 10,000+ tonnes per month thereafter.”
