Johannesburg, South Africa — MININGREVIEW.COM — 19 March 2010 – ASX-listed Riversdale Mining Limited “’ a company focused on developing as a diversified mining finance house with Southern African interests “’ expects to ramp up production of coal at its Benga coal mine in Mozambique much quicker than initially planned, due to higher demand.
Reuters quotes Riversdale deputy chairman Andrew Love as saying that the company was initially planning to have a run of mine of 5 million tonnes of coal per year starting in 2011, and was planning to increase that amount to 20 million tonnes by around 2016.
“We are getting a lot of people coming to us saying that there is a shortage of coking coal around the world “’ we think that there is a possibility of bringing the timelines forward,” he told Reuters on the sidelines of an Africa power conference.
Love said the company also planned to export thermal coal from the mine to feed power plants in the southern African region and beyond. It was still revising the timelines and quantities, and could not provide details yet, but he added that India would be a major market for its coal because of the pace of its domestic demand.
Riversdale holds a 65% stake in the mine and India’s Tata Steel owns the rest.
In an earlier presentation, Love said the company was also progressing well with its plan to build a coal-fired power plant next to the plant. “We are looking at concluding commissioning and construction by late 2013 or early 2014,” he revealed.
The power plant “’ estimated to cost up to US$1.3 billion (R9.75 billion) “’ is expected to produce 500 MW initially, expanding to 2 000 MW later, depending on the availability of a north-south transmission line that would help trading power in the region.