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.