The coalition between Tata Steel and Riversdale Mining is likely to begin production at its Benga coal venture in Mozambique by the year 2014. According to the alliance, Tata Steel has 35% interest, whereas the remaining 65% is owned by Riversdale Mining.
Reportedly, Riversdale has declared finishing point of feasibility learning for the Benga Coal venture. The feasibility study considers three chief phases of growth to line up with the conclusion and subsequent growth of port, rail and river barging infrastructure in Mozambique. The first stage 1 growth at 5.3 million ROM tonnes each year will make around 0.3mtpa of export thermal coal and 1.7mtpa of high quality hard coking coal.
The phase 2 growth by the year 2014 will comprise equipment of a second module of the coal preparation factory and rise ROM production to 10.6 million ROM tonnes each year to make 2mtpa export thermal coal and 3.3mtpa high quality hard coking coal.
The last phase is expected to boost coal production to around 20 million ROM tonnes per year via installation of 2 extra coal preparation factory modules. Riversdale is sufficiently financed for its 65% share of the Banga phase 1 growth that remains at $169 million.