Deals struck include a memorandum of understanding agreement with Wuhan Iron and Steel Corporation and a logistics partnership agreement with China Communications Construction Company.

WISCO will get 40% of the project for its $800 million which will be paid in three tranches – $200 million on completion of the JV agreements, $150 million after the feasibility study is complete and $450 million once all government approvals are in to start development.

This move entitles the company to at least 40% of the coking coal produced from the Zambeze project, plus an option to buy at least 10% of coking coal from the neighbouring Benga mine.

The Chinese steelmaker also gets the option to buy up 8% of Riversdale at $10 per share when definitive agreements on the project are entered into, with the finalisation of the deals expected within 120 days.

“This is an outstanding result for Riversdale Mining and the company’s shareholders,” Riversdale executive chairman Michael O’Keeffe said.

“We have secured the participation of partners that are able to bring investment, logistics experience and proven infrastructure capabilities to develop Zambeze and to deliver its hard coking coal to world markets.

“Through our Chinese venture partners, we gain funding to develop the mine and a buyer for part of Zambeze’s offtake.

“We also gain access to world‐class mine‐to‐ship logistics and infrastructure expertise to facilitate the export of the mine’s coal products.”

Riversdale recently lifted the total coal resources of its Zambeze project from 1.7 billion tonnes to more than 9Bt.

Shares in the company are down 13c to $11.22 this morning.