Edenville Energy plc (AIM:EDL) the company developing a coal-to-power project in south west Tanzania, said it was “delighted” it had received a mining licence from the Tanzanian government.
The licence covers its coal resource at Mkomolo, which hosts the majority of Edenville’s coal within the Rukwa coal deposit.
It gives the exclusive right to ‘search for, mine, dig, mill, process, refine, transport, use and or market coal, in and vertically under the Mining Licence Area and execute such other works as are necessary for that purpose’ for 10 years.
Edenville now expects to sign a framework agreement setting out the milestones for a power purchase agreement with national power firm Tanesco.
Chief executive Rufus Short, said: “We are delighted that the mining licence for our Rukwa coal deposit has been formally released to the company. We would again like to thank Professor Muhongo,minister for energy and minerals, and his Tanzanian government colleagues for the help and support they have provided.
They have expressed the strong desire to see Edenville commence preparatory groundworks within the next three months, followed by a formal opening ceremony to ‘break ground’ in Q3 2016 and commercial production within 18 months.”
Recommended for you
