HomeEnergy MineralsRiversdale signs Benga contract

Riversdale signs Benga contract

Drill team at work
at Riversdale’s Benga
project in Mozambique
 
Maputo, Mozambique — MININGREVIEW.COM — 18 May 2009 – Riversdale Mining Limited – a mining company listed on the Australian Stock Exchange with the intention of developing as a diversified mining finance house – has signed a contract with the government of Mozambique for its US$800 million (R77.2 billion) Benga coal project in the southern African country.
 
“Mozambique is officially signing a concession license for Riversdale, and mineral resources minister Esperanca Bias is in Tete to sign the mining contract,” ministry secretary Oracio Belengueze told Reuters.

The Benga project will include a hard coking and thermal coal mine with an anticipated production of 20 million tonnes per year. Riversdale plans to start producing coal at Benga in 2010, and aims to export 2 million tonnes of the mineral each year, starting in the last quarter of 2010.

The Australian company holds a 65% stake in the project, and India’s Tata Steel holds the rest.

Riversdale is also investing US$3.1 billion (R27 billion) in a thermal power project in Mozambique.

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