AMN - TANZANIA: Mkomolo mining licence granted

Edenville Energy, which is developing a coal-to-power project in southwest Tanzania, has reported that its Mining Licence (ML 562/2016) has been formally released by the Tanzanian Ministry of Energy and Mines.

Edenville International (Tanzania) Ltd (EITL) is incorporated in Tanzania and is a 99.5%-owned subsidiary of its ultimate parent company, Edenville Energy.

The Mining Licence covers the company's Measured and Indicated, JORC compliant coal resource at Mkomolo, which hosts the majority of Edenville's coal resource within the Rukwa coal deposit, and 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'.

The Licence, which covers an area of approximately 8.49sqkm, shall remain in force for an initial period of 10 years from the date of grant.

The Mining Licence states that the Licensee will start development work within three months from date of grant, or such further period as may be agreed by the Minister, on the basis of plans, general design for the mine and related facilities consistent with the approved Mining Plan.

The Licensee will start regular production from the Mining Licence area within a period of 18 months from the date of grant or within such further period as may be agreed by the Minister.

As a next step the company expects to announce the signing of a Framework Agreement setting out the milestones for a Power Purchase Agreement (PPA) with Tanzania Electric Supply Co (Tanesco).

Edenville CEO Rufus Short says: "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.

“In the meantime, Edenville continues to work closely with the MEM and Tanesco to enable signing of the Framework Agreement which allows negotiations for the PPA and Transmission Line Agreement to formally start. We look forward to working closely with the Tanzanian authorities, the local and regional community and commercial entities to bring Edenville's Rukwa Coal to Power project to fruition."

The Rukwa coalfields, Mkomolo, Namwele and Muze projects, are previously mined, near-surface coal deposits. There are 173 million tonnes total in-situ at Mkomolo, Namwele and Muze combined, of which 57.5 million tonnes is classified as Measured and Indicated at 17.42 MJ/kg. Some 90% of this resource tonnage lies within Mkomolo and Namwele; Muze still to be fully evaluated.

The coal has been confirmed as suitable, after washing, for coal fired power generation. It is a robust geological model; resource constrained to discrete coal zones identified within the overall coal measure sequence.

http://edenville-energy.com/

News courtesy of International Mining