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Edenville in a 'strong position' searching for long term contracts
Edenville Energy shares jumped more than 10% after the company provided an update on several new contracts at its Rukwa coal development project in Tanzania on Tuesday.
The coal mining and power company has secured a one year contract to supply a minimum of 2,000 tonnes of coal per month to an East African industrial user, along with a slew of trial orders with other potential customers for a further several thousand tonnes per month.
One such trial order, for 4,000 tonnes, will result in a further contract for 60,000 tonnes over a six month period if the initial batch is deemed suitable.
Edenville Energy chief executive Rufus Short said: "We believe we are in a strong position as a coal producer in Tanzania. Whilst our current production is mainly under one off contracts with potential longer-term customers, we are confident that a sufficient number of these orders will lead to longer-term contracts. This coal is being sold at commercial market rates, similar to those rates we expect for longer-term deals."
After commencing production at the project back in October, Edenville is now receiving payments for shipments made in late 2017.
Edenville Energy's shares were up 12.84% to 0.46p at 1003 GMT,