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Edenville hires Nairobi coal broker for Tanzania distribution

coal

A coal trader in India. Coal producer, Edenville Energy, recently started treating the commodity at its wash plant. FILE PHOTO | NMG

Kenya-based coal and commodities trader Riftcot has signed a distribution agreement with Edenville Energy, a coal producer based in southwest Tanzania.

Under the agreement Riftcot will purchase at an agreed commercial market price up to 75 per cent of the company’s Rukwa coal project’s yearly production. The deal will run for an initial term of five years starting in October this year.

Both firms said the agreement will see major industrial groups in Tanzania and East Africa supplied with Edenville’s coal through Riftcot’s established marketing and logistical framework.

Edenville recently started treating coal through its wash plant, with full production set for January next year.

The company said it has set sights on production volumes of at least 10,000 tonnes of coal every month.

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“We see this as an opportunity to leverage Riftcot’s trading platform and experience with Edenville’s newly opened project which will produce washed coal for the East African market,” said Edenville chief executive Rufus Short.

“By committing 75 cent of our production we are able to give volume to Riftcot’s supply contracts whilst also having some product in reserve to supply other clients with their individual requirements.”

The contract excludes supply to a planned mine-mouth power plant at Rukwa.

Edenvillle Plc, listed on the London Stock Exchange, has been allowed to develop the washed-coal plant by the Tanzanian ministry of energy.