Australian firm signs contract to process coal in Mozambique

15 June 2010

Milton, Australia, 15 June – Australian company Sedgman has signed a contract worth US$80 million for construction of a mineral coal processing unit in Benga, Tete province, northern Mozambique, the company said in a statement.

According to the statement published on its website, the contract was signed with Riversdale Moçambique, a partnership of Australian group Riversdale Mining, with a 65 percent stake, and India’s Tata Steel, with the remaining 35 percent.

Sedgman also said that, with this new contract, the company now had contracts at the Benga coal project worth a total of US$143 million.

The coal processing unit to be built by Sedgman will process around 5.3 million tons of ROM coal per year and produce approximately 1.7 million tons of high quality metallurgic coal and 0.3 million tons of thermal coal per year.

Last May, Riversdale Mining announced that confirmed reserves at the Benga project had risen 84 percent, with total estimated reserves now standing at 4 billion tons. (macauhub)

MACAUHUB FRENCH