JOHANNESBURG (miningweekly.com) – JSE-listed Eqstra on Thursday confirmed to shareholders that diversified miner Rio Tinto had declared force majeure at its Benga coal project, in Mozambique, following the closure of the Sena railway line, owing to flood damage.
Eqstra said Rio Tinto issued its subsidiary Eqstra Mozambique, which manages the opencast mining at Benga, with a notice on Wednesday, saying it was suspending its contractual obligations as from February 20.
“The duration of the force majeure is unknown and shareholders will be updated as the company gains clarity on the developments from Rio Tinto and our internal executive assessment team that has been dispatched to Benga.
“Joint meetings have been set up between Rio Tinto and Eqstra to establish measures to be taken to minimise the impact of the event,” the company stated.