Edenville Energy has reached an agreement with NextGen to terminate the Contract with respect to the operation of the Company’s Rukwa Coal Project in Tanzania and has subsequently resumed full control of the site and mining operations. Following the termination of the Contract all mining equipment has been brought back into service by the Company, whilst an additional pre-strip excavator has been added to the fleet. Up to three additional trucks are also being sourced to rapidly scale production. The Company’s initial goal is to satisfy existing demand from local customers of 1,500 tonnes of washed lump coal product and 500 tonnes of coal fines in the immediate future, targeting sales of 5,000 tonnes per month of washed coal late in Q3 of 2022, with coal fines sales also expected to continue and possibly expand. The Company 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.Also, Upendo Group Ltd’s current 10% economic interest in the joint venture, which holds the licences governing the Rukwa Project, had been transferred to a 10% direct holding on the principal production licence, the Company remains in discussions with its legal advisers regarding the validity of the transfer and consequences thereof.
Edenville Energy has reached an agreement with NextGen to terminate the Contract with respect to the operation of the Company’s Rukwa Coal Project in Tanzania and has subsequently resumed full control of the site and mining operations. Following the termination of the Contract all mining equipment has been brought back into service by the Company, whilst an additional pre-strip excavator has been added to the fleet. Up to three additional trucks are also being sourced to rapidly scale production. The Company’s initial goal is to satisfy existing demand from local customers of 1,500 tonnes of washed lump coal product and 500 tonnes of coal fines in the immediate future, targeting sales of 5,000 tonnes per month of washed coal late in Q3 of 2022, with coal fines sales also expected to continue and possibly expand. The Company 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.Also, Upendo Group Ltd’s current 10% economic interest in the joint venture, which holds the licences governing the Rukwa Project, had been transferred to a 10% direct holding on the principal production licence, the Company remains in discussions with its legal advisers regarding the validity of the transfer and consequences thereof.
