Benga, Mozambique — MININGREVIEW.COM — 15 April 2010 – ASX-listed Riversdale Mining Limited “’ a company focused on developing as a diversified mining finance house with Southern African interests “’ has contracted a subsidiary of South African leasing and capital equipment firm Eqstra for open pit mining at its coal mine project in Mozambique.
The deal with MCC Contracts (Pty) Limited “’ an open cast mining unit at Eqstra “’ covers mining for the first phase of the Benga project, with a run of mine of 5.3 million tonnes per year. This will yield an annual output of 1.7 million tonnes of hard coking coal and 0.3 million tonnes of export thermal coal.
“Together we are committed to bringing the Benga coal mine into production, and shipping first coal by late 2011,” Riversdale chairman Michael O’Keeffe said in a statement.
The Benga project is Riversdale’s first venture in Mozambique, with the resource estimated to produce a run of mine of 20 million tonnes per year for more than 25 years.
The mine launching ceremony “’ attended by Mozambican President Armando Guebuza and Mineral Resources Minister Esperanza Bias “’ signals the beginning of a programme of works and investment that will eventually see over US$1 billion (R7.5 billion) expended on developing a major coal mine at Benga,” O’Keeffe said. He added that it was expected to boost job opportunities and infrastructure investment in the southern African country.
The firm is also involved in the building of a US$1.3 billion (R9.75 billion) coal-fired power plant at Benga, due for completion by early 2014. The plant will initially produce 500 MW, which may be expanded to 2 000 MW.