Australia-based mining company Rio Tinto Group may add 25 million metric tons of Mozambican coal to its annual output after buying Riversdale Mining Ltd, according to media reports.
Riversdale managing director Steve Mallyon stated that Rio's total coal production from Mozambique will be 25 million mt by 2016 if all goes according to plan.
Production at the Benga project in Mozambique is due to start in November or December, while export is expected to start late this year or early next year when the work at Beira port is completed. Benga is scheduled to ship about 5 million mt of unprocessed coal and it may expand to 20 million mt.
As SteelOrbis previously reported, Rio Tinto lately announced that it will compulsorily acquire Riversdale after Tata Steel stated that it will divest its entire 26.27 percent stake in Riversdale to Rio Tinto.