Maputo, Mozambique, 18 May – Australian company Riverdale Mining as of 2010 plans to mien 20 million tonnes of coal per year in Benga, Tete province in central Mozambique, in an investment of over US$800 million.
An agreement was signed Friday in Tete with this aim by the chairman of Riversdale Mining, Michael O’Keefe, and Mozambique’s Mining Resources Minister, Esperança Bias.
The memorandum outlines the terms under which Riversdale Mining Ltd should carry out the Benga coal project, including exploration, feasibility, development, operations, tax regime and requirements for closing down the mine.
A statement from Riversdale Mining published Friday in Maputo said that, as well as the contract for the project’s implementation, the Mozambican government had issued the mining concession title, the formal document that gives mining rights and replaces the current prospecting and research license.
Riversdale Mining is carrying out the financial feasibility study for teh Benga rpoject (the draft version is due to be concluded this quarter), which will take into consideration the considerable fall in the basic costs and teh consequences of the impact of the global recession on the mining industry.
O’Keefe said, meanwhile, that Riversdale Mining was not feeling the world financial crisis as “it has the advantage of having the capital in the bank and a project that is ready to be carried out.” (macauhub)