The Australian company's sole mine - the Zululand Anthracite Colliery - stepped up production 10% during the September quarter when compared with figures for the same period last year to reach 173,804 tonnes.

In the area of exploration Riversdale became the largest tenement holder in the Tete-Moatize area after securing a portfolio of tenements from Aquila Resources covering 86,620 hectares in the Tete province.

Riversdale's tenement holding now comprises 23 exploration licences and covers a total area of 290,080ha.

The quarter was boosted financially with the signing of a memorandum of understanding with global steel group Tata Steel that will acquire a 35% project interest in two exploration licences - the Benga 881L and Tete 1319L licences - which cover an area of 24,960ha.

The two tenements will be held in a joint venture company in Mozambique to develop the coal project and strengthen relations between the companies.

Settlement of the MoU transaction is expected by the end of November this year.