26 September 2008
Maputo — The Australian company Sedgman Limited has won the tender launched by Riversdale Mining, and its Indian partner, Tata Steel, to undertake a design and implementation agreement for a coal handling and preparation plant at Riversdale's Benga coal project in the western Mozambican province of Tete.
According to a Riversdale press release received by AIM on Friday, Sedgman "is a leading provider of mineral processing solutions to the global resources industry", and "is widely recognised as a market leader in the design, construction and operation of CHPPs (Coal Handling and Preparation Plants)".
Sedgman is now required "to file a final Design and Implementation Agreement and project definition report with Riversdale Mining and Tata Streel by the end of December 2008".
These documents "will address all coal handling infrastructure requirements for the initial 800 tonnes per hour (tph) facility, and the expansion of the total plant to 3,000 tph". This is to include "all materials, plant and equipment associated with the construction of the new facilities".
Riversdale says the initial facility, at Benga, in Moatize district, will be built in 2009, and should be scaled up to 3,000 tph by 2012. The release cites the Executive Chairperson of Riversdale, Michael O'Keefe, as saying "We are planning to produce hard coking and thermal coal at the Benga Coal Project by 2010. The appointment of Sedgman and planning for the coal handling and preparation plant is another important step for Riversdale Mining and Tata Steel and reaffirms the commitment we have given to the government of Mozambique".
Last month Riversdale delivered its mining study to the government. This envisages an open cast mine at Benga that will produce 20 million tonnes of coal per year. Start-up investment at Benga is estimated at 800 million US dollars.
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