Benga coal project, Mozambique
Name and Location
Benga coal project, Mozambique.
Client
Benga Mine is operated by Rio Tinto Coal Mozambique (RTCM) and is a joint venture between Rio Tinto (65%) and Tata Steel Limited (35%).
Project Description
The Benga mine is located in the Moatize basin in the Tete province of Mozambique.
The mine was officially opened in May 2012 and commercial production for that year amounted to 460 000 t.
Phase 1 production from the mine is expected to ramp up to a rate of 1.4-million tons a year of coking coal and 800 000 t/y of thermal coal in 2013.
However, near-term sales volumes will reflect the availability of rail and port capacity.
Value
Not stated.
Duration
Benga was officially opened in May 2012, with first coal exported from the Port of Beira in June 2012.
Latest Developments
In 2013, an impairment charge of $2.86-billion post-tax was recognised relating to Rio Tinto’s coal business in Mozambique.
The development of infrastructure to support the coal assets has been more challenging than Rio Tinto originally expected.
Rio Tinto sought to transport coal by barge along the Zambezi river, but this option did not receive formal approvals.
These infrastructure constraints and a downward revision of the estimates of recoverable coking coal volumes on the RTCM tenements have led to a reassessment of the overall scale and ramp-up schedule of RTCM and, consequently, to the impairment.
Rio Tinto continues to engage with the government of Mozambique on all transport-infrastructure options.
Key Contracts and Suppliers
MCC Contractors (mining contract for Benga Stage 1); Sedgman Africa (CHPP design, supply and construction contracts); Ludowici (supply of two RC2020 reflux classifiers and lined piping); Cosira Group (supply contract for CPWP); and National Railway Equipment and TŽV Gredlelj (supply of diesel locomotives).
On Budget and on Time?
Not stated.
Contact Details for Project Information
Rio Tinto Coal Mozambique media manager – external affairs, Helder Ossemane, email Helder.Ossemane@riotinto.com.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation