Maputo, Mozambique — ESI-AFRICA.COM — 07 January 2011 – Australian-based and listed Riversdale Mining and Indian joint venture partner Tata Steel have reached an agreement which will allow them full ownership of the US$1 billion Benga power plant project in Mozambique.
The coal-powered plant “’ scheduled to start production by 2013/2014 “’ is expected to produce 500 to 600MW in its first phase and 2 000 MW in later development.
Riversdale said it would own 65% of the plant and Tata the remaining 35%, after their joint venture agreed to buy a 50% option in the facility from Elgas SARL for an undisclosed sum.
“The parties have agreed that the Benga Joint Venture has the resources and is best placed to accelerate development of the power plant,” Riversdale said in a statement.
Coal for the power plant will be supplied from Riversdale’s Benga Coal Project, currently under development and expected to produce its first coal in the third quarter of this year.