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Riversdale Mining Ltd has increased the assessment of coal reserves at its Benga joint venture in Mozambique, in Africa, by 84 per cent.
The Sydney-based miner said its 65 per cent-owned Benga coal mine, of which India's Tata Steel Ltd holds a 35 per cent stake, now had a proven and probable coal reserve of 502 million tonnes.
Its measured, indicated and inferred coal resource at the site was 4.03 billion tonnes, the company said.
A coal resource is the part of the site in which the coal has reasonable prospects for eventual profitable mining, while the reserve is the part of the site that can already be mined economically.
Tata Steel managing director H M Nerurkar said the increase in Benga's coal reserves would help the project develop into one of global significance.
Riversdale said tests of Benga's coking cola showed it was of equal quality to high quality coal from Queensland's Bowen Basin.
The Australian company has secured development approvals for a 20 million tonnes per year operation at Benga, with stage one expected to be ready by the second part of 2011, to produce 5.3 million tonnes per year.
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