Riversdale Mining to issue bonds if Rio Tinto’s takeover bid fails

11 March 2011

Sydney, Australia, 11 March – Riversdale Mining plans to issue bonds worth US$2 billion to fund its projects in Mozambique if the takeover bid for the group by Rio Tinto fails, the company’s chief executive said Thursday in Sydney.

Michael O’Keeffe told financial news agency Bloomberg that the company had been analysing the bond market over the last 18 months and “we have seen that there is high demand for these kinds of stocks,” and added that, “my suggestion is that if Rio Tinto’s bid fails we should immediately carry out a bond issue.”

Anglo-Australian group Rio Tinto increased its bid for Riversdale Mining to 3.9 billion Australian dollars, but the group’s two main shareholders, Indian group Tata Steel and Brazil’s Companhia Siderúrgica Nacional (CSN), seem not to be interested in the deal.

O’Keefe said that the company needed the US$2 billion to develop its concession in Benga and Zambeze, Mozambique, which have billions of tons of estimated coal reserves.

In January, Riversdale Mining announced it needed 400 million Australian dollars to fund phases 2 and 3 of the Benga project and at least 2.9 billion dollars for the Zambeze project. (macauhub)

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