Edenville Energy reported a wider loss in 2015 as it revealed it is finding it harder than expected to raise the money needed for its flagship Rukwa coal-to-power project in Tanzania as it reported a wider loss during 2015 due to higher impairments.
The company reported a wider loss in 2015 of £4.5million compared to the £2.3million loss in 2014. Increased impairments and a fall in finance income contributed to the deficit.
The Rukwa project comprises of a coal mine that will feed a power plant to generate power for the domestic market.
Edenville has completed the feasibility study for the power plant at Rukwa and is expected to release the study covering the coal mine in the near future.
Chief executive Rufus Short, said: “Like most small natural resource companies the challenge the company continues to face is the raising of development capital.
“However, with the continued support of the Tanzanian authorities, along with the considerable interest shown by international groups and institutions, we will endeavour to continue to source suitable capital when available for the project to continue its progress to development.”
The company’s cash balance stood at £316,652 at the end of 2015, less than half the £641,830 at the end of 2014.
Since the start of 2016, Edenville has made progress. The company has advanced its framework agreement with Tanesco and signed a collaboration deal with Ruhn Power, a Chinese company.
Edenville said investors had shown interest developing the project. Progress will depend on formalisation of a framework agreement with Tanesco which the company is currently working on.
The initial priorities for Edenville is to develop the infrastructure, prepare for the removal of coal to be washed and analysed in South Africa and ensure it is optimal for the feed.
