JOHANNESBURG (miningweekly.com) – ASX-listed Riversdale Mining has received environmental approval from the Mozambican government for its Benga coal project in the Tete province, the company said on Monday.

Riversdale completed an environmental impact study (EIS) for the 20-million ton a year coking and thermal coal project in mid-2009.

In October, the Australian company and its Indian joint-venture partner, Tata Steel, committed $270-million to undertake the stage-one development of the mine, which would produce 1,7-million tons a year of coking coal and 300 000 t/y of export thermal coal.

At the time, Riversdale said that construction would start as soon as the final environmental approvals were received.

The phase-two expansion, which is estimated to cost $150-million, would boost run-of-mine (RoM) production to 10,6-million tons a year, lifting output to 3,3-million tons year hard coking coal and two-million tons a year thermal coal.

In the final stage, RoM would increase to 20-million tons a year.

Riversdale chairperson Michael O’Keeffe said in October that coal production would start in 2010.

Riversdale is planning to build a mine-mouth coal-fired power station at the Benga project. It has partnered with Elgas SARL to develop the initial 500-MW power station.

Coking coal exports from the mine would start in 2011.

The Benga project has a coal resource of four-billion tons, while its adjacent Zambeze project had a resource of 1,7-billion tons.

The Zambeze project is Riversdale’s second major coal project in the Moatize Basin.