HomeEnergy MineralsUS$270 million Mozambique coal mine approved

US$270 million Mozambique coal mine approved

Drilling team
at work at Benga
Sydney, Australia — MININGREVIEW.COM — 28 October 2009 – Australian-based and listed mining company Riversdale Mining Limited and Tata Steel Limited “’ India’s biggest producer of the metal “’ have approved the development of a US$270 million (R2.1 billion) coal mine in Mozambique, with first production scheduled for next year.

“The first stage of the Benga project will produce an estimated 1.7 million metric tonnes of coking coal and 300 000 tons of thermal coal for export,” Riversdale said here in a statement to the Australian stock exchange. “Construction will start by the end of this year,” it added.
“We will be supplying the world’s coking coal markets in 2011 initially through our relationship with project partner Tata Steel,” Riversdale chairman Michael O’Keeffe confirmed. Riversdale said in the statement. Tata Steel owns 15% of Riversdale.

“We are considering a second-stage expansion to boost production to 3.3 million tonnes of coking coal and 2 million tonnes of thermal coal by 2014.”