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Located in Tete Province, the Riversdale (65%) and Tata Steel (35%) Benga project is in the initial stages of development.
The Riversdale team completed an environmental impact study in mid-2009, approved this week by the Mozambican government’s environment department.
Just a few weeks ago Riversdale granted an early procurement contract to Sedgman for the project’s $US270 million first stage, entailing processing 5.3Mtpa to produce 1.7Mtpa of hard coking coal and 300,000tpa of export thermal coal.
The CHPP is being designed for an initial throughput of 800 tonnes per hour with provision for staged expansion to 3000tph.
Under the $150 million stage 2, expected to begin in 2014, a second module will be added to Benga’s coal preparation plant.
This will allow increased run-of-mine production of 10.6Mtpa, including 3.3Mtpa of hard coking coal and 2Mtpa export thermal coal.
The final stage, with the addition of two plant modules, will increase ROM output to 20Mtpa.
Benga has a resource of 4 billion tonnes, including 1.03Bt measured and indicated resources, of which 893Mt are below 500m deep. The project also has initial coal reserves of 273Mt.
Riversdale was up 2.84% in late day trade at $A7.98.
