Riversdale Mining to be allowed to build coal-fired power plant in Mozambique

26 January 2010

Sydney, Australia, 26 Jan – Australian company Riversdale Mining has said that the Mozambican government, via the Ministry for Coordination of Environmental Action, has approved the environmental impact study for construction of a thermoelectric power station in Benga, Tete province.

The Benga power station project, which will be coal-fired, will be implemented in two phases, the first of which will produce 500 megawatts of electricity when its starts operating in 2013.

In a second phase the plant will produce 2,000 megawatts of electricity, a production level that will depend on power transmission capacity and the proposed transmission line to be used.

In a statement published on its website, the company said that it had been granted access to Mozambique’s existing power grid.

The mining company said that at the moment it was waiting for the satisfactory conclusion of purchase negotiations with several players, which were still underway.

Riversdale recently concluded the feasibility study for exploration of the Benga coal mine, where it expects to mine 5.3 million tonnes of coal per year in an initially stage (2009-2014).

The same study said that exploration would occur in three stages and later the railroad and river barge transport facilities would be expanded.

The Benga mine has estimated coal reserves of 273.3 million tonnes, made up of 181.3 million in proven reserves and 92 million of likely reserves.

Riversdale holds the concession on the Benga coal mine for 25 years and, throughout this period, will create 1500 direct permanent jobs, as well as a further 4,500 indirect jobs. (macauhub)