LONDON (ShareCast) - (ShareCast News) - Tanzania-focussed coal power development company Edenville Energy updated the market on coal marketing and construction at its Rukwa coal project site on Tuesday, confirming it had now entered into a marketing agreement with an unnamed UK company with "links" to African energy and commodities trading.
The AIM-traded firm said the agent, which had been sourcing possible customers for Edenville's coal, wished for its identity to remain confidential at the present time for commercial reasons.

"Now that the start of production of washed coal from the company's onsite wash plant is imminent, it has allowed both parties to start to pursue advanced negotiations with groups who have shown an interest in the Rukwa coal," Edenville's board reported.

"Over the coming weeks and months we will be developing those relationships with the intention to secure orders for Edenville coal."

The board said the marketing agreement with the agent had an initial timeframe of two years, which could be renewed by mutual consent.

It was also non-exclusive, and also allowed Edenville to discuss and market its coal independently to other groups not introduced by the agent.

Edenville said the agent will be responsible for introductions, liaison and - where appropriate - management of coal sales and delivery, and would be remunerated on a commission basis on completed sales.

"We are extremely pleased to have formalised our relationship with a group which has been actively using its relationships throughout East Africa to introduce our coal to end users," sadi Edenville CEO Rufus Short.

At the site itself, Edenville said on-site construction wa continuing to advance "rapidly".

Since the last announcement on 25 August, the coal screen had now been tested and was operational, having already processed coal from the mine.

The board said the wash plant frame, drum and launder were now assembled on their concrete base and work was progressing on assembly of the remaining conveyors and infrastructure.

"With the screen already operating and the imminent commissioning of the wash plant, the project is in a good position to provide processed coal to industry throughout East Africa," Rufus Short added.

"The team on site has put in great efforts to make up any lost time that was out of our control and construction is advancing rapidly.

"Additionally we are very encouraged by the coal starting to be exposed and I hope the we can fill a market niche for consistent quality coal shortly."

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