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Mozambique coal feasibility completed

Drill team at work at
Riversdale’s Benga
project in Mozambique
 
Maputo, Mozambique — MININGREVIEW.COM — 20 July 2009 – Riversdale Mining Limited “’ an ASX-listed company developing as a diversified mining finance house “’ has completed its feasibility study for a coal mine in Mozambique, and will send the study to Indian firm Tata Steel, which has a 35% stake in the project, to analyse as well.

Reporting from the Mozambiquan capital, Reuters quotes Riversdale as saying in a statement that the viability study had been based on the estimates of coal reserves the company had made in April.

The study envisaged that in the initial phase, 5.3 Mtpa would be extracted. Of this, 1.7 million tonnes would be top quality hard coking coal for export, and 300 000 tonnes would be thermal coal, also for export.

Riversdale said expansion to the second stage, by 2014, would raise production to 10.6 Mtpa, including 3.3 Mt of coking coal and 2 Mt of thermal coal for export.

The third stage would almost double production to 20 Mtpa, it said, leaving open the timeframe.

“The timetable for the third stage will depend, among other factors, on the future conditions of the coal market, the availability of port capacity, and the availability of rail and river transport,” the statement added.

Mining and coal processing should begin by early 2011.

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