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Developing A Successful Mining House |
Source: ASX, price delayed by at least 20 minutes
| Developing A Successful Mining House |
Riversdale Mining Limited is a mining company listed on the Australian Stock Exchange under the ASX code RIV and included on the Standard & Poor’s ASX 200 Index. The Company intends to develop as a diversified mining finance house, focused on growth through investment in suitable mining opportunities. It is the company’s intention to assemble a portfolio of suitable assets through rapid growth for the benefit of all our shareholders, and emerge as a diversified mid-tier mining house with excellent returns on shareholder funds, a strong orientation to growth, and a pipeline of projects.
Zululand Anthracite Colliery (ZAC)
On 1 December 2005 Riversdale completed the acquisition of 74% in ZAC, an operating underground anthracite mine located in the Zululand coalfield of northern Kwa-Zulu Natal, South Africa. The run of mine (ROM) coal production was 917,622 tonnes for the year ended 30 June 2008 (2007: 799,196 tonnes), resulting in a saleable production of prime low ash of 607,024 tonnes and middlings of 128,193 tonnes.
Product sales for the year ended 30 June 2008 was 670,336 (2007: 785,995). At the 30 June 2008 ZAC had Coal Resources of over 40.8 million tonnes of coal in situ and the mine life has been extended to 17 years at current production levels.
Mozambique Coal Project
The Company became a leading coal enterprise in a major emerging coal region following an agreement to acquire the following exploration tenements in Mozambique:
- 16 coal bearing tenements covering an area of 203,460 hectares located in the Lower Zambezi Coal Basin were acquired during October 2006.- 6 tenements covering an area of 53,220 hectares located in the Tete province were acquired during August 2007. These tenements are contiguous with tenements already held by Riversdale and those held by one of the world’s largest mining groups, Vale (formerly CVRD).
The combined tenement size now held by Riversdale is in excess of 250,000 hectares in the Tete-Moatize area, with an extensive area capable of supporting long life operations in this emerging and highly prospective region. The region is within economic reach of the East African coast, with access to the port of Beira by means of a railway line from Moatize that is being rehabilitated.
During April 2009 Riversdale announced updated Resource and Reserve statement for the Benga Coal Project (EL 881L) in the Tete Province, Mozambique. The Benga Project is held in a joint venture between Riversdale Mining Limited (65%) and Tata Steel Limited (35%). Based on the data collected from recent drilling activities, a Coal Resource of 4.0 billion tonnes has been estimated. Of this amount, 1,033.9 million tonnes (Mt) is the combined total for Measured and Indicated Resources and 893.4 Mt of these are at a depth of less than 500m.
An initial Coal Reserve of 273.3 million tonnes has been estimated. Of this, 181.3 Mt are Proved Coal Reserves and 92.0 Mt are Probable Coal Reserves. These Reserves have been estimated in accordance with a review that anticipates an initial Run of Mine (ROM) development of 5.3 Mtpa, increasing subsequently to 10 Mtpa and ultimately 20 Mtpa as transport infrastructure become available.
The Company has also received in April 2009 approval from the Government of the Republic of Mozambique for the Benga Coal Project Mining Contract. This Mining Contract establishes the particular terms which govern the development and implementation of the Project and covers all aspects of the proposed development including exploration, feasibility, development, operations, fiscal regime, rehabilitation and final mine closure requirements. |
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