Riversdale in offtake deal for Benga coal

mine in Mozambique.
“The take-or-pay agreement covers all thermal coal produced from the Benga Coal Mine during stage one of the mine’s development and is valued at over US$200 million at forecast thermal coal prices,” Riversdale said in a statement.
It said the agreement would help drive profits during the first stage of the mine’s development. Riversdale’s key assets are its Benga and Zambeze projects in Mozambique, which could supply up to 10 percent of the global market for coking coal, a key ingredient in steel-making. Global miner Rio Tinto, which won control over Riversdale in April, has said it will move quickly to work Riversdale to accelerate development of the projects, with Benga due to start exporting coal later this year. – Reuters.