Indian group Tata Steel announced, during a presentation to analysts, that it will start exporting coal mined in Benga, Mozambique this month the Indian press reported.
The group plans to export 850,000 tons of coking coal and 200,000 tons of thermal coal this year and next. The coal will be used by Tata Steel Europe (previously the Corus Group).
In 2007 the Indian group acquired a 35 percent stake in the Benga project for US$88.2 million from Australian mining company Riversdale Mining, which is now almost 100 percent-owned by Anglo-Australian group Rio Tinto.
The 26.27 percent stake owned by Tata Steel in Riversdale Mining was sold last year to Rio Tinto for US$875 million as part of the takeover bid launched for 100 percent of the Australian company.
The Benga project has estimated reserves of 720 million tons of coal. (macauhub)