Edenville Energy makes solid progress in first half

Edenville Energy, the company developing a coal to power project in south western Tanzania, posted a half-year report for the six months to 30 June on Friday.

During the period, the AIM-traded company was granted a mining licence over the Mkomolo deposit, and initiated the site upgrade and development work there in in May.

Its Rukwa Coal to Power Project Concept documents were reviewed by the Tanzania Electric Supply Company Ltd and approved in May as well, with Edenville now progressing the Environmental and Social Impact Assessment for the plant.

The board reported a continued focus on cost management with the relinquishment of three non-core prospecting licenses in April.

“The first half of 2016 further built the foundations for the future development of the company's Rukwa coal to power project,” said CEO Rufus Short.

“Significantly, in March 2016 the award of the mining licence over the Mkomolo deposit provided the cornerstone to move forward and crucially demonstrated the Tanzanian government's commitment to development of the coal industry in Tanzania.”

Short said that since the national elections of October 2015, the government has been working to develop its policy and approach to coal and energy in the country.

“Recently this has significantly moved forward with the government's directive to ban coal imports from the end of August 2016.

“Additionally, the newly formed board of Tanesco has been working to define and implement an updated energy development policy,” Short explained.

He said with that in mind, Edenville is continuing to complete the technical and environmental requirements for the development of its coal to power project.

“The company is awaiting the rollout of further policy initiatives by the government and Tanesco which will lead to completion of agreements and development timeframes.

“Importantly we are also actively evaluating all opportunities that are arising due to the recent coal ban by the government.”

On a financial basis, the company managed to report income during the period thanks to the impact of foreign exchange.

Revenue and gross profit still stood at zero, but after expenses and a foreign currency gain, Edenville Energy posted total comprehensive income for the period of £100,732, compared with a loss of £527,579 for the same period in 2015.