Mozambique grants Riversdale coal mining licence

MAPUTO, April 29 (Reuters) - Australia's Riversdale Mining RIV.AX has been granted a mining licence for the Benga Coal project in Mozambique, the company said on Wednesday.

Riversdale executive chairman Michael O'Keeffe said this was a major step towards the start of the project, from which it plans to export 2 million tonnes of coal a year starting in the last quarter of 2010.

"This is an outstanding achievement and is the outcome of years of hard work ... We have invested significantly in this project, and we are delighted to have received endorsement through this approval," O'Keefe said in a statement.

Riversdale said the licence establishes the terms governing the development and implementation of the Benga Coal Project, including exploration, feasibility, development, operations, fiscal regime, rehabilitation and final mine closure requirements.

The company said last month preliminary test results at Benga suggested it had top quality coking coal and may become a key supplier to steel mills worldwide.

It said the prime hard coking coal from Benga would be among the lowest cost coking coal in the world.

"The approval underlines our belief in the Moatize basin as a mining region of immense potential and will now allow us to deliver on the commitment we have given the government in Mozambique," O'Keeffe said.

Riversdale Mining Limited holds 65 percent of the Benga Coal Project while Tata Steel Limited (TISC.BO) owns the remaining 35 percent.

Riversdale is also investing $3.1 billion in a thermal power project in Mozambique.