Rain, mining licence conditions posing a challenge for Edenville's Rukwa mine
Coal miner Edenville Energy continues to face challenges at its Rukwa mine, in Tanzania, as a result of wet weather and warnings from the Mining Commission in Tanzania that the company has failed to perform certain tasks required under its mining licence.
The company reports that, although it has stockpiled a substantial amount of run-of-mine (RoM) coal at Rukwa to mitigate, as far as possible, the impact from the rainy season, in Tanzania, the RoM coal has proven difficult to wash as a result of its moisture content.
The production of washed coal is, therefore, expected to be reduced for as long as the rains continue, which could be for several more months, it warns.
Edenville has, however, sold 948 t of wash coal, generating revenue of about £34 500, for the period from January 1 to March 27.
Meanwhile, the coal miner is in discussions with the Mining Commission about the outstanding requirements under the Rukwa mining licence.
It says both parties have agreed to work on resolving any outstanding issues, while also ensuring the company is in full compliance with local regulations.
Edenville continues to run the day-to-day operations at Rukwa while continuing discussions with the commission and says it looks forward to remedying the outstanding matters concerning the licence in consultation with the commission on a timely basis.
"We remain focused on resolving any legacy issues at Rukwa and remain confident that the challenges can be overcome. However, in conjunction with this, we are also focused on securing potential new and exciting coal opportunities," comments CEO Noel Lyons.
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