The result more than doubled the $4.1 million net loss made in the corresponding period of 2009 as costs racked up from development, exploration, share issues and foreign exchange losses.
Overburden removal is underway in the south pit of the emerging Benga coking coal mine in Mozambique (65% Riversdale, 35% Tata Steel), while site construction has started for the run-of-mine dump station and associated conveyor belts.
Samples have been shipped from the bulk sample pit, while commissioned equipment onsite includes an excavator and a dozer, along with dump trucks, graders and cranes.
The coal handling and processing plant is scheduled for completion in September, and the first 1.2 kilometres of the conveyor and secondary haul roads is complete.
Permanent haul roads are being made using material from the pit area, while orders have been placed for long-lead items for the planned rail siding, and for locomotives and wagons.
Riversdale said it was at an advanced stage of finalising an access agreement for the completed Sena rail line that links the Moatize Basin to Beira port.
While first-stage exports can go through Beira, construction work on the Berth 8 terminal, targeting 18-24 million tonnes per annum of capacity, is overlapping the design work to fast-track the project.
Dredging at the port to bring in larger coal vessels has begun.
Riversdale has compared the Zambezi River in the country to the Mississippi, and noted that South African miners had barged coal on the river before the Mozambican War of Independence.
Work has started on drafting the environmental and social impact assessment of barging coal to the mouth of the river at Chinde on the coast, and Riversdale expects a regulatory decision to be made in mid-2011 for this additional transport option.
The flagship Benga mine was officially opened in April last year and is expected to start premium coking coal exports in the second half of 2011.
At full production under stage 2 development, the Benga mine is aimed to export 6Mtpa of prime hard coking coal and 4Mtpa of export thermal coal by 2013.
Riversdale is also advancing a prefeasibility study for its nearby and bigger $2 billion Zambeze hard coking coal project, which holds more than 9 billion tonnes of resources.
Last year the company started investigating the long-term possibility that Zambeze could become a 90Mtpa ROM operation.
There were nine rigs drilling the project from November when a second drilling contractor was brought in.
During the half, Riversdale’s Zululand anthracite colliery in South Africa encountered more difficult geological conditions underground, with ROM production slipping 4.8% year-on-year to 377,633 tonnes.
Production is expected to improve this calendar year as extraction starts up in the Ngwabe block.
There was a fatality at this mine in the first half of 2010 and another occurred in the second half after a worker was struck by a coal haulage truck which was exiting the maingate of the CHPP. Investigations are ongoing.
Rio takeover
Riversdale’s board has approved Rio’s off-market takeover offer at $16 per share in the absence of a superior proposal.
Rio’s offer was previously scheduled to close on Friday next week, but this morning the major miner extended it for another 14 days to 7pm (AEDT) March 14.
The offer is subject to a greater than 50% minimum acceptance condition, Foreign Investment Review Board approval and other conditions.
Riversdale shares are down 3c to $15.12 this morning.
