Riversdale updates market on plans for Benga Power Project in Mozambique July 23, 2009

Riversdale Mining (ASX: RIV) has made good progress in advancing the Company’s prospective Benga Power Project in Mozambique.

The development of the Riversdale/Elgas SARL Joint Venture project for a proposed 500MW coal-fired thermal power station is now dependent upon a number of key criteria including:

• Access to existing Mozambique power transmission networks
• Finalisation of a Framework Agreement with the Mozambique Government, and
• Concluding satisfactory Power Purchase Agreements with various off-take parties.

The Riversdale/Elgas SARL Joint Venture is well advanced in its discussion and negotiation on each of the three pre-conditions outlined above, and the Company anticipates updating shareholders on further progress on this project in the second half of 2009.

This update was presented to the SADC/SAPP/RERA Investor Roundtable Conference in Livingstone, Zambia in July 2009. The Riversdale/Elgas SARL Joint Venture project for a proposed 500MW coal-fired thermal power station was one of ten shortlisted southern African power projects presented to potential investors and financiers at the conference.

The proposed Benga Power Plant (“BPP”) will be located in the Tete province of Mozambique on Riversdale’s Benga Mining Concession, with competitive cost advantages due to its proximity to the Benga Coal mine location and the Zambezi River.

Riversdale see the BPP as helping to fill the regional power shortage and to supply the Benga Coal mine, with the BPP currently planned to be developed in two phases. Phase 1 will involve a 500MW coal-fired, mine-mouth power station expected to be completed during 2013 using existing transmission assets and Phase 2 upgrade to a capacity of 2,000MW depending upon the proposed transmission backbone and other transmission capacity.

Expressions of Interest have been received from internationally recognised power producers interested in taking a major equity stake.

Click here to view the full presentation.

For further information, please contact:

Bill Kemmery
Fortbridge Consulting
Tel: (612) 9331 0655
Mob: (61) 400 122 449
Email: bill.kemmery@fortbridge.com