JOHANNESBURG (miningweekly.com) – Emerging mining company Riversdale Mining would start coal exports from its Benga project, in Mozambique in the second quarter of 2011, the Australian company said on Tuesday, when it announced that it had completed the feasibility study for project.

Riversdale said that Indian steel giant Tata, which owns a 35% stake in the Benga coal project, would review the feasibility study, where after the joint-venture company would make a development decision.

The feasibility study contemplated three principal stags of development to align with the completion and subsequent expansion of rail, port, and river barging infrastructure in Mozambique.

The initial stage-one development, which at a cost of $260-million, would produce about 1,7-million tons a year of high-quality hard coking coal, and 0,3-million tons a year of export thermal coal.

The stage-one mine production and coal preparation plant start-up is planned for early 2011, with export of coal from the Port of Beira expected to start upon commissioning of the third-party operated Sena railway, and the refurbishment of the coal export facility at Beira, currently anticipated or the second quarter of 2011.

Riversdale said that the phase-two expansion would include the installation of a second module of the coal preparation plant, boosting output to 3,3-million tons a year high-quality hard coking coal, and two-million tons a year export thermal coal.

The stage-two production, which would cost $150-million, would start no later than 2014, and would be timed to coincide with the opening of a new purpose built multi-user coal terminal, at the Port of Beira, as well as the start of barging operations.

The final stage was anticipated to increase coal production to about 20-million run-of-mine tons a year, through the installation of two additional coal preparation plant modules.

“The decision on the timing of the stage three expansion will depend, amongst other things, on future coal market conditions, and the availability of port, rail and barging capacity at the time,” the company stated.

The feasibility study was based on coal reserve and coal resource estimates, released by Riversdale in April. Coal reserves totalled 273,3-million tons, comprising proved reserves of 181,3-million tons, and probable reserves of 92-million tons.

Coal resources totalled 4-billion tons, comprising measured resources of 313,9-million tons, indicated resources of 720-million tons, and inferred resources of 2,99-billion tons.

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