Maputo, Mozambique — MININGREVIEW.COM — 02 September 2008 – Riversdale Mining Limited – an Australian-listed mining company focused on growth through investment in suitable Southern African mining opportunities – has announced two significant developments at the company’s US$800 million (R6 billion) Benga hard coking thermal coal project in Mozambique.
In a letter to the Australian Securities Exchange, the company revealed that it had formed an International Advisory Board to oversee the next stage of the project’s development, with a specific mandate to develop and implement key corporate social responsibility programmes in support of the project’s development and proposed coal mining operations in Mozambique.
The letter added that the board would be headed by Mozambique-based executive chairman Casimiro Francisco, supported by the non-executive directors José Oscar Monteiro and Michael Price. Michael O’Keeffe and Andrew Love would also be members of the board, acting as representatives of the company’s main board.
Coinciding with this development, the company has also finalised the Mozambique coal project mining study which was lodged this week with the Mozambique government in support of Riversdale Mining’s application for a mining contract to advance its highly prospective Benga Licence.
Riversdale Mining executive chairman Michael O’Keeffe said that the initiatives represented an important milestone in the coal project’s development. “Mozambique will be a future resource of global significance for the world’s coal markets, and we are extremely proud to be in a position to contribute towards this,” he said.
“Our mining study clearly states that there can be no successful mining operation in Mozambique without due consideration for the wider economic, environmental and social impact of mining activities,” said O’Keeffe.
The mining study is based on a planned 20 Mtpa production at the Benga mine, and the company is forecasting that the prime hard coking coal from Benga will be among the lowest cost coking coal in the world.
Riversdale Mining estimates the economic impact to the local economy of the Mozambique coal project to be substantial. “At full operation, we forecast that the coal mine will create 1 500 direct permanent jobs, plus some 4 500 indirect jobs, resulting in huge economic activity locally,” it explained.
“Training and meaningful community programmes will also be central to the company’s overall operations in Mozambique,” the company added. “ A substantial community programme will also be implemented to raise the standard of living for people in the project area. This will include initiatives aimed at improving education, health, water supply, sanitation, agriculture and infrastructure,” it concluded.