HomeEnergy MineralsRiversdale earnings down, but coal sales up

Riversdale earnings down, but coal sales up

Removing core at
Riversdale’s Benga
project in Mozambique
Sydney, Australia — MININGREVIEW.COM — 22 February 2010 – ASX-listed Riversdale Mining Limited “’ a company focused on developing as a diversified mining finance house with Southern African interests “’ posted a significant increase in coal sales during the second half of 2009, reflecting a recovery in the anthracite market.

Releasing its half-year results to 31 December 2009, the company revealed a 22% rise in coal sales from 318 083 tonnes the previous half-year to 388 519 tonnes.

The company’s net loss after tax and minority interest for the half year to 31 December 2009 had amounted to $4.2 million. The loss had been due to lower interest income, lower coal production and higher mining costs at the company’s Zululand Anthracite Colliery in South Africa.

The results statement explained that market conditions had nevertheless continued to improve as customers expanded their production levels from previous lows, and prices realised for both domestic and export sales had increased towards the end of the first half.

It went on to reveal that significant progress had been recorded at the company’s projects in Mozambique including the following developments:

  • The joint venture participants in the Benga coal project (Riversdale 65%, Tata Steel 35%) had approved development for Stage 1 (5.3 million ROM tonnes per annum);
  • Approval for the Environmental Impact Study on the Benga coal project had been granted by MICOA, the regulatory authority for environment within the government of Mozambique.
  • In October, the first coal resource estimate for the 100% owned 1.7 billion tonne Zambeze project near Tete had been announced, categorised as indicated resources in accordance with the JORC Code (2004).