Riversdale Mining (65%) and Tata Steel (35%) have commisioned the Benga coal joint venture in Mozambique's promising Zambeze Coal Basin in the Moatize district of Tete Province.
The project has received considerale national support marked by the attendance of Mozambican president Armando Guebuza to open the project.
At full commercial production rates starting in 2011, the mine is expected to produce 5 million tonnes of coal per annum, rising to a potential 20 million tonnes from 2016. Capex for the project has been set at around $270 million for the first phase.
Moving the coal to market remains a challenge. It is presumed that the coal could be routed along the Sena railroad to Beira for final export. There is also specualtion about using the Nacala port, or via the Zambezi River to Chinde.
