MEM and Tanesco Site Visit

RNS Number : 9278E

Edenville Energy PLC

22 July 2016

 

22 July 2016

EDENVILLE ENERGY PLC

("Edenville" or the "Company")

MEM and Tanesco Site Visit

Edenville Energy plc, the Company developing a Coal to Power Project in south west Tanzania is pleased to provide the following update on the latest developments with regard to the project. 

As part of the process to advance the requirements for power plant planning and documentation, including the Power Purchase Agreement ("PPA"), senior representatives of the Tanzanian Ministry of Energy and Minerals ("MEM") and Tanzania Electric Supply Company Ltd ("Tanesco") have this week completed a site visit to Edenville's Rukwa Coal to Power project.

Amongst other visitors, the MEM was represented by the Deputy Minister, Dr Medard Kalemani and Tanesco's senior management for the Rukwa Region was represented by Regional Officer, Lucas Kusale.  The Company was represented by CEO Rufus Short, along with our consultants, Tansheq. Cassiano Kaegele, a director of Upendo, our local partner, also attended and coordinated local groups at the meeting.

Very positive and constructive meetings were held between Edenville's representatives and the MEM and Tanesco, with discussions focussed on the next steps to occur in their process to take the project forward.

The Deputy Minister stressed the MEM's commitment to progress the project through its development phases, a point clearly demonstrated by the MEM's granting of the Mining Licence to the Company for the Mkomolo area in February 2016.

During the visit the Deputy Minister also congratulated Edenville on the Company's progress to date and commented favourably on the high number of Tanzanian professionals involved in the Project.  The use of local personnel is keenly encouraged by the Tanzanian authorities and Edenville will continue its policy of finding the best technical employees and consultants from within Tanzania wherever possible.

Edenville is very encouraged by the considerable effort being placed on moving the project forward by both the MEM and Tanesco, and their commitment towards the development of it, and ultimately the generation of power, at the Company's Rukwa site.

The site visit was an integral part of the process of moving the project forward and the Company awaits receipt of detailed documentation from the Tanzanian authorities setting out the parameters for ultimate project development and power generation.  Further meetings are expected to take place between the MEM, Tanesco and the Company over the coming weeks and months to finalise and agree these detailed plans and processes.

The successful finalisation of plans and processes will allow the groups we are in detailed discussions with, which are connected to EPC (Engineering, Procurement and Construction) and supply of equipment, to move forward on a more formal arrangement basis.  All the groups we are in discussions with also have the capability to directly or indirectly invest in the development of the project.

In parallel, the Company continues to progress many other elements of the project, with particular immediate focus on important areas such as the progression of the Environmental Impact Assessment ("EIA") for the power plant portion of the project, the EIA certificate for mining already being in place as part of the requirement for the granting of the Mining Licence.

Rufus Short CEO of Edenville commented: "I am extremely grateful to the MEM and Tanesco for their visit to site and for them to see the progress we have made.  Their continued support for our project is very encouraging and I am very positive about the future development options for our Rukwa Coal to Power Project.  Feedback from the site visit is that there is a clear requirement for significant power generation in the Rukwa Region and beyond, something the authorities are addressing.  Edenville is in a key position to contribute to this with its project being in close proximity to both Sumbawanga and the planned development of the western power line.

"All groups are working together to move this forward and it is important to understand there is a process in place to move the development through the required steps needed, to result in power generation coming online.  The MEM, Tanesco and other government bodies are all working alongside the Company to take forward a robust project that has long term viability, both from a commercial and regulatory standpoint. 

The opportunities for the Sumbawanga area are considerable and reliable power will both support the development of local industrial opportunities and provide power to the wider Tanzanian grid system.  With the authorities taking a measured and professional approach to developing the generating potential of Tanzania, I am confident this will result in the best outcome for Tanzania and our shareholders. 

The Company will continue to provide updates as the project progresses."

A photograph from the MEM and Tanesco site visit may be seen by following the link below:

http://www.rns-pdf.londonstockexchange.com/rns/9278E_-2016-7-21.pdf

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

For further information please contact:

Edenville Energy Plc Rufus Short - Chairman and CEO	[phone]
Northland Capital Partners Limited (Nominated Adviser) Gerry Beaney David Hignell Stuart Miller	[phone]
Optiva Securities Limited (Broker) Jeremy King Graeme Dickson	[phone]
IFC Advisory Limited (Financial PR and IR) Tim Metcalfe Graham Herring Heather Armstrong	[phone]

 

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