Shuka Minerals resolves longstanding dispute with Upendo

18th Mar 2024 14:55

(Sharecast News) - Africa-focussed mine developer and operator Shuka Minerals said in an update on Monday that it had resolved a longstanding dispute with Upendo Group concerning its Rukwa coal mining asset.

The AIM-traded firm, formerly known as Edenville Energy, said the legal proceedings had now been terminated following the necessary court filings in Tanzania.

As part of the settlement, Upendo would soon have a representative joining the board as one of six directors of the local subsidiary.

The board said the collaborative effort was expected to bolster the development and advancement of the company's prospects at Rukwa.

Operations at the site had faced challenges, particularly limited coal production exacerbated by the recent rainy season.

However, with local mining staff returning from annual leave this week, preparations for a new production cycle were underway.

Despite the challenges, regional market demand for coal remained robust.

Shuka Minerals said it planned to reassess its production targets on resuming normal activities, promising further updates accordingly.

Additionally, Shuka's board said it was actively exploring potential acquisitions of advanced mining and mine development projects across Africa.

One such opportunity, meeting the company's key acquisition criteria and focusing on a commodity other than coal, was under active consideration.

At 1230 GMT, Shuka Minerals shares were down 2.29% at 11.97p.

Reporting by Josh White for Sharecast.com.