[miningmx.com] — RIVERSDALE Mining said on Friday that it had entered into an offtake agreement with trader Trafigura for thermal coal from its Benga coal mine in Mozambique.
“The take-or-pay agreement covers all thermal coal produced from the Benga Coal Mine during stage 1 of the mine’s development and is valued at over $200m 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% 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.
