JOHANNESBURG (miningweekly.com) – Australian coal-miner Riversdale Mining and joint-venture partner Tata Steel have approved the development of the first phase of the Benga coal project, in the Tete province of Mozambique.

The partners have committed $270-million, excluding working capital, to undertake the stage one development of the project, which would produce an initial 1,7-million tons a year of coking coal and 300 000 t/y of export thermal coal.

Riversdale Mining, which owned 65% of the project, and India’s Tata Steel, which owned the balance, would provide funding in their respective proportions from existing cash resources or alternative means.

The ASX-listed company noted that it had A$268-million in cash available to fund its required share of $175-million.

Construction would start as soon as the final environmental approvals were received, which was expected to be before the end of this year.

“We are committed to bringing the Benga coal project into first production during 2010, and we will be supplying the world’s coking coal markets in 2011 initially through our relationship with project partner Tata Steel in India,” commented Riversdale chairperson Michael O’Keeffe.

The ASX-listed company was also planning to build a mine-mouth coal-fired power station at the Benga project and has partnered with Elgas SARL to develop the initial 500-MW power station.

This would be commissioned by April 2013, following which the plant could be scaled up to 2 000 MW.

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