Edenville Energy Plc has announced its subsidiary Edenville International (Tanzania) Limited has entered into a contract with Nextgen Coalmine Limited for the operation of the Company’s Rukwa Coal Project in Tanzania. The Agreement is for an initial period of one year from 1 February 2022, and supersedes the Coal Mining Agreement with Infrastructure and Logistics Tanzania Limited and the Sales and Marketing Agreement with MarTek Global FZ-LLC, announced by the Company on 8 June 2020 and 26 August 2020 respectively, which have been terminated by Edenville.
Under the Agreement the Contractor will pay EITL a royalty of US$10 per tonne of washed coal sold and a royalty of US$5 per tonne of any coal fines sold. The Contractor intends to utilise existing EITL employees and equipment where appropriate, as well its own, to increase production, sales and ultimately the profitability of operations. The Contractor will be responsible for taking over operations with immediate effect to improve efficiency, however Project ownership will remain with EITL. The Contractor will also be responsible for all operational and maintenance costs relating to the mining and production of washed coal at Rukwa, as well as all taxes, duties and royalties related to coal sales and the licence extension costs.
