Riversdale mining’s Zambezi project in Mozambique has reserves of 9 billion tons of coal

1 June 2010

Sydney, Australia, 1 June – Australian company Riversdale Mining said Monday in Sydney that it had raised the estimated coal reserves at its Zambezi project, in Mozambique’s Tete province to 9 billion tons.

The Zambezi project, which is 100-percent controlled by Riversdale Mining, is the second biggest company in the Moatize coal basin, is adjacent to the Benga coal project and covers an area of 24,740 hectares, and is substantially bigger than the Benga project.

On 18 May, Riversdale Mining announced an 84-percent increase to 502 million tons in confirmed coal reserves at the Benga project, which it explores in consortium with Indian group Tata Steel.

The estimated reserves at the Benga project currently stand at 4 billion tons.

With this rise in confirmed reserves the consortium’s plans to mine 20 million tons of coal per year, both for export and to fire the power station planned for Tete province, are gaining momentum.

Construction of phase 1 will be concluded in the second half of 2011, and is expected to produce 5.3 million tons of run-of-mine (ROM) coal per year.

The Benga coal mine, the exploration of which currently represents an investments of over US$8000 million, is owned by a partnership between Riversdale Mining (65 percent) and Tata Steel (35 percent). (macauhub)