Riversdale signs up first contractor for Benga

RIVERSDALE Mining and joint venture partner Tata Steel have appointed processing consultants Sedgman to move the $US800 million ($A955 million) Benga Mozambique coal project a step closer to production.
Riversdale signs up first contractor for Benga Riversdale signs up first contractor for Benga Riversdale signs up first contractor for Benga Riversdale signs up first contractor for Benga Riversdale signs up first contractor for Benga

 

Kate Haycock

The deal, the first major project commitment by the JV partners, will see Sedgman file a final design and implementation agreement for the proposed coal preparation and handling plant at the Benga project.

The initial processing plant will have a throughput of 800 tonnes per hour but Sedgman will also be required to factor in an expansion to 3000tph.

Riversdale is eyeing a 2009 start-up for the project with production to begin by 2010, with hopes to export coking coal and utilise thermal coal at a minemouth power station.

Benga, which is 35%-held by Tata after a buy-in last year, has 42Mt measured resources and 981Mt indicated, with a further 1.09 billion tonnes falling into the inferred category.

Riversdale plans to complete a bankable feasibility study into developing Benga by the end of this year.

Shares in the company were last trading at $9.54, up over 6% or 61c.

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