Bernie were did you get the information that stage 1 would cost 300mil? This article pasted below suggests it will be 800mil which in that case they will fall short of their 65%.
Sedgman wins Riversdale Mining tender for Benga coal project
It is reported that Australian company Sedgman Limited has won the tender launched by Riversdale Mining and its Indian partner TATA Steel to undertake a design and implementation agreement for a coal handling and preparation plant at Riversdale's Benga coal project in the western Mozambican province of Tete.
Sedgman is now required to file a final design and implementation agreement and project definition report with Riversdale Mining and TATA Steel by the end of December 2008. These documents will address all coal handling infrastructure requirements for the initial 800 tonnes per hour facility and the expansion of the total plant to 3,000 tonnes per hour. This is to include all materials, plant and equipment associated with the construction of the new facilities.
Riversdale said that the initial facility at Benga will be built in 2009 and should be scaled up to 3,000 tonnes per hour by 2012.
Mr Michael O'Keefe executive chairperson of Riversdale said that "We are planning to produce hard coking and thermal coal at the Benga Coal Project by 2010. The appointment of Sedgman and planning for the coal handling and preparation plant is another important step for Riversdale Mining and TATA Steel and reaffirms the commitment we have given to the government of Mozambique."
In August 2008, Riversdale delivered its mining study to the government. This envisages an open cast mine at Benga that will produce 20 million tonnes of coal per year. Start up investment at Benga is estimated at USD 800 million.
Weihuawang I will research the railway and port situation over the w'end and see what I can find. Got my last week of exams at uni so need to keep my head in the textbooks till then!
RIV Price at posting:
$2.17 Sentiment: Buy Disclosure: Held
