Moatize Basin shaping up as a coal province - Riversdale
With the Benga coal project now boasting 2.1 billion tonnes of resources, and more than 1 billion tonnes of that boasting measured and indicated status, Riversdale Mining said that Mozambique’s Moatize Basin is shaping up as a coal province of global importance.
Riversdale Mining said that it had added 200 million tonnes of coal resources to the project’s inventory, after several months of infill drilling at the Benga license. The project, 65% owned by Riversdale and 35% by TATA Steel, now includes 42 million tonnes in measured resources and 981 million tonnes indicated, with a further 1.09 billion tonnes falling into the inferred category.
Having submitted a mining study for a 20 million tonnes per annum operation to the government of Mozambique, Riversdale said that the resource upgrade confirms there is enough coal in the ground to support its plans. Additionally, 1.77 billion tonnes of the resource are less than 500 meters deep.
Riversdale is eyeing an open cut operation at Benga to produce coking and thermal coal, with the exact mix of both undecided. The coking coal could be barged down the Zambezi River to a port facility on the ocean for export, while the thermal coal resource could supply a mine-gate power station.
The Moatize Basin hosts Riversdale’s tenements as well as coal deposits owned by Brazilian giant Vale, while nearby Anglo Indian steelmaker ArcelorMittal has also signed a JV over more coal prospective tenements. Riversdale plans to complete a bankable feasibility study into developing Benga by end of 2008.
RIV Price at posting:
$8.18 Sentiment: Buy Disclosure: Held
