Riversdale and Tata approve initial development of Benga Project October 28, 2009

Riversdale Mining Limited (ASX: RIV) and Tata Steel Limited are pleased to announce the approval of the approval of Stage 1 of the Benga Coal Project in the Tete Province of Mozambique.

Riversdale Mining Executive Chairman Mr Michael O’Keeffe said that the decision represented the official go-ahead for the company’s coal mining operations in Mozambique. Construction is expected to commence before year end upon receipt of final environmental approvals.

Following the review of the Feasibility Study by project partners Riversdale Mining (65%) and Tata Steel (35%), the project was approved by the joint venture company responsible for the Benga Coal Project.

The project approval involves the commitment of US$270 million (excluding working capital) to undertake the initial Stage 1 development of the Benga Coal Project. Stage 1 entails initial production of 5.3 million ROM tonnes per year to produce approximately 1.7Mtpa of high quality hard coking coal and 0.3Mtpa of export thermal coal.

Funding for Stage 1 of the project will be provided by Riversdale Mining and Tata Steel in their respective proportions from existing cash resources or any alternative means as appropriate. Riversdale Mining currently has A$268million cash to fund its share (US$175million) of the project.

“We are committed to bringing the Benga Coal Project into first production during 2010, and we will be supplying the world’s coking coal markets in 2011 initially through our relationship with project partner Tata Steel in India,” Mr O’Keeffe said.

Click here to view the full announcement.

For further information, please contact:

Steve Mallyon
Managing Director
Ph: +612 8299 7900

Niall Lenahan
CFO
Ph: +612 8299 7900

or

Media: Fortbridge
Bill Kemmery
Ph: +612 9331 0655
Mob: +61 400 122 449
Email: bill.kemmery@fortbridge.com