The Minas de Changara JV will explore for coal in the country’s Tete province.

In a statement Rio said the JV would be 75%-owned by a unit of Rio and the rest by Mozambique Mining.

Rio will transfer three existing exploration licenses to the venture but it is unclear whether they are the same licenses acquired from Riversdale and subsequently written down in January.

At the time of publication, ILN had not received the requested clarification from Rio about the licenses.

In the statement the company said it would fund the project’s exploration, with both partners responsible for financing development if exploration proved the project to be feasible.

Rio Tinto Mozambique head Eric Finlayson said the partnership with MEM underlined the long-term commitment Rio had with Mozambique's development.

“We want to develop a globally competitive coal industry in order to contribute to the prosperity of Mozambique,” he said.

However, only a few months ago Rio was less enthused about the region and its challenges when the company announced a $3 billion write-down on the $4 billion Riversdale acquisition less than two years after it was completed.

After the January announcement, Rio Tinto chairman Jan du Plessis explained: “In Mozambique, the development of infrastructure to support the coal assets is more challenging than Rio Tinto originally anticipated.”