Brazilian group CSN takes stake in Australia’s Riversdale Mining

25 November 2009

Sao Paulo, Brazil, 25 Nov – Brazilian company Companhia Siderurgica Nacional (CSN) said Tuesday it planned to take a stake in Australia’s Riversdale Mining, which is involved in some of the main investment projects in Mozambique.

The board of the Brazilian company approved the purchase of up to 1.3 percent of Riversdale, which is expected to cost an estimated 190.5 million Australian dollars (US$75.2 million).

Riversdale has important energy and coal mining projects underway in South Africa and Mozambique.

In September the government of Mozambique signed a deal with mining company Riversdale to study the installation of the Benga Thermal Power Plant in Tete province, with initial investment of US$1.3 billion.

The agreement is for Riversdale to start the feasibility study for the construction of a thermoelectric power plant with initial production capacity of 500 MW, but with a view to increasing that amount to 2,000 megawatts in 2014.

The Benga coal project was approved by the government in April, implying an initial investment of around US$270 million, to be provided by a consortium headed up by Riversdale (65 percent of the capital), which also includes India’s Tata Steel (35 percent). (macauhub)