Australian Stock Exchange-listed mining company Riversdale Mining Limited and its partner for the Benga Joint Venture (JV) in Mozambique, i.e., the Indian steel giant Tata Steel, have said that they will take full ownership of the $1 billion Benga power plant, which is scheduled to deliver power in 2013-2014.
Accordingly, the JV has acquired an option to buy another 50 percent interest in the Benga power plant from Elgas SARL, its former joint partner in the plant. The financial details of the deal have not been disclosed.
The fuel for the power station will be supplied by the Benga coal project which is currently in development and is scheduled to produce first coal in Q3 2011. The move to full control of the Mozambique power plant is expected to accelerate the development of the project.
Riversdale owns 65 percent of Benga JV, while Tata Steel owns 35 percent.
As SteelOrbis previously reported, in December 2010 the Australian mining giant Rio Tinto Group offered AU$3.9 billion (US$3.91 billion) for Riversdale Mining Limited.