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Edenville secures 2 African coal deals to supply up to 9,000 tonnes a month

Edenville Energy PLC signed two contracts to supply washed coal from its Rukwa coal project in Tanzania, covering about 75% of the current capacity of the recently refurbished plant.

Edenville will supply up to 6,000 tonnes to Rwanda-based Tara Group Ltd. and up to 3,000 tonnes to Uganda-based Springwood Capital Ltd.

Edenville said Dec. 11 that the Rwanda contract could open up a shorter, more cost-effective coal transport route on Lake Tanganyika to Rwanda and Burundi.

The two agreements will go ahead if the company secures sufficient capital to fund production. Edenville said it is in discussions with a potential strategic investor, while another has expressed interest.

Provided capital is available, Edenville expects to launch the new contracts before the end of the first quarter of 2020.

Edenville forecasts cash flow breakeven at Rukwa, with monthly sales of about 4,500 tonnes of washed coal, by May 2020.