Sydney, Australia, 27 Nov – Coal production in Mozambique’s Tete province is expected to be launched in 2010, according to concession-holder Riversdale Mining, of Australia, which is a partner of India’s Tata Steel in these projects.
To finance the project, Riversdale plans to issue shares to the value of US$205 million, which will be sold on the market over the next few months.
Tata Steel in August invested half of this amount in the acquisition of a 35 percent stake in two mining projects, in Benga and Tete provinces.
The Benga license, in the district of Moatize, is estimated to have reserves of 1255 billion tons of coal, according to figures published by Riversdale.
The types of coal available are appropriate for use in steel making and at coal-fired power plants.
Last week, ArcelorMittal, the world’s largest steel maker, announced that it would go into coal production in Mozambique, with an initial investment of US$2.5 million which has given the company a 35 percent share in Rio Minjova Mining and Exploration, in a joint venture with Black Gold. (macauhub)