Tata Steel, Riversdale Mining in JV for Mozambique coal project
Tata Steel and Riversdale Mining have signed a joint venture agreement to develop a hard coking and thermal coal project at key coal exploration tenements held by Riversdale in Mozambique.
By INDIATIMES NEWS NETWORK |
MUMBAI: Tata Steel and Riversdale Mining have signed a joint venture agreement to develop a hard coking and thermal coal project at key coal exploration tenements held by Riversdale in Mozambique.
As per the agreement, Tata will pay Australian $100 million (around $88.2 million) to acquire 35 per cent project interest. For this consideration, Tata will secure a key position in the joint venture to develop the Mozambique Coal Project, as well as 40 per cent share of the off-take for coking coal.
Tata will also have the option to participate above this level of tonnage, and may participate with Riversdale in future opportunities.
The joint venture comprises the Benga licence and Tete licence and covers an area of 24,960 hectares. Riversdale Mining holds a total acreage of over 290,000 hectares in Mozambique.
Riversdale Mining recently announced a major coal resource in the Benga licence. Based on the drilling results undertaken by Riversdale, the total resource is estimated at 1.225 billion tonne categorized as inferred resources and is in accordance with the JORC Code 2004. Of this, 720 million tonne is considered to have the potential to be extracted by open-cut methods.
The coking coal derived from this project will be supplied to the Tata Steel group's facilities in Europe, Asia and elsewhere.
At 10:18 am, Tata Steel shares were up 0.89 per cent at Rs 809.30 on BSE.
As per the agreement, Tata will pay Australian $100 million (around $88.2 million) to acquire 35 per cent project interest. For this consideration, Tata will secure a key position in the joint venture to develop the Mozambique Coal Project, as well as 40 per cent share of the off-take for coking coal.
Tata will also have the option to participate above this level of tonnage, and may participate with Riversdale in future opportunities.
The joint venture comprises the Benga licence and Tete licence and covers an area of 24,960 hectares. Riversdale Mining holds a total acreage of over 290,000 hectares in Mozambique.
Riversdale Mining recently announced a major coal resource in the Benga licence. Based on the drilling results undertaken by Riversdale, the total resource is estimated at 1.225 billion tonne categorized as inferred resources and is in accordance with the JORC Code 2004. Of this, 720 million tonne is considered to have the potential to be extracted by open-cut methods.
The coking coal derived from this project will be supplied to the Tata Steel group's facilities in Europe, Asia and elsewhere.
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At 10:18 am, Tata Steel shares were up 0.89 per cent at Rs 809.30 on BSE.
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