bigdog
Retired many years ago
- Joined
- 19 July 2006
- Posts
- 8,131
- Reactions
- 5,490
Yesterday RIV hit 52 Week High of 11.3500 (52 Week Low 4.9500) and SP was up 81 cents yesterday after ASX ANN below
Shares Issued 200,107,524 Market Capitalisation $2,255,211,795 (24-06-10)
ANN stated that "Contribution of US$800 million for 40% participation, values Zambeze Coal Project at US$2.0 billion"
There are Two ‘Tier 1’ hard coking and thermal coal projects in Mozambique –Benga & Zambeze
Benga development on schedule, with Stage 1 production expected in H2’2011
Zambeze PFS progressing
Substantial tenement holding in the Moatize Basin, the next major coal region
Potential exists for future mine developments within Riversdale’s other tenements
ASX AAN yesterday
24/06/2010 8:59:00 AM Zambeze Coal Project
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01073920
MEDIA RELEASE
24 June 2010
Riversdale Mining signs agreements with Chinese venture partners for the development of the Zambeze Coal Project
● MoU signed with Wuhan Iron and Steel Corporation (WISCO)
● Logistics partnership agreement signed with China Communications Construction Company (CCCC)
● Contribution of US$800 million for 40% participation, values Zambeze Coal Project at US$2.0 billion
● WISCO to subscribe for an 8% equity stake in Riversdale
● Secures investment as well as logistics and infrastructure expertise
Riversdale Mining Limited (ASX: RIV) is pleased to advise that the company has signed a non‐binding Memorandum of Understanding (“MoU”) with Wuhan Iron and Steel (Group) Corporation (“WISCO”) and a logistics partnership agreement with the China Communications Construction Company ("CCCC") for the development of the Zambeze Coal Project (“Zambeze”) in Mozambique.
The MoU provides for the acquisition by WISCO of 40% of the Zambeze Coal Project (EPL 946L) in the Tete Province of Mozambique for a total consideration of US$800 million to be paid in three tranches and subject to achievement of certain milestones. When completed, the transaction values Zambeze at US$2.0 billion.
In addition, at the date of signing of the definitive agreements, WISCO will be issued 8.0% of the ordinary shares in ASX‐listed Riversdale Mining at an agreed price of A$10.00.
The Zambeze Coal Project is Riversdale’s second Tier 1 coal project in the Moatize Basin and is adjacent to the Benga Coal Project. The Zambeze Project is similar in structure to Benga with 22 coal seams outcropping over a strike length of 14 kilometres across the northern portion of the tenement. On 31 May 2010, the Coal Resource estimate for Zambeze was upgraded to 9.0 billion tonnes.
WISCO will earn the right to purchase at least 40% of the coking coal produced from Zambeze, and the right to purchase at least 10% of the coking coal produced from the Benga Project, in each case on market terms.
The MoU also covers the facilitation by WISCO, along with CCCC and other Chinese companies, of a comprehensive study of mine‐to‐ship logistics to enable the export of large tonnages of coal products from the Zambeze Coal Project to ports for export markets. WISCO will also facilitate the participation of a number of Chinese financial institutions in arranging the necessary project finance.
The MoU is non‐binding, pending completion of definitive agreements within 120 days of signing the MoU.
WISCO will subscribe for 8% of the ordinary shares in Riversdale Mining Limited upon signing of the definitive agreements. The US$800 million consideration for the 40% interest in Zambeze is subject to achievement of certain milestones and the consideration will take the form of three tranches:
1. US$200 million will be paid on completion and signing of the definitive agreements covering the joint venture for the Zambeze Coal Project;
2. US$150 million will be paid on the successful completion of the feasibility study for Zambeze, subject to meeting agreed milestones including establishing the commercial viability of developing and operating the Zambeze Coal Project to produce not less than 30,000,000 ROM tonnes of coal per annum and evaluation of Zambeze using all the coal resources and reserves; and
3. US$450 million will be paid on the granting of the mining contract, mining licence, final environmental approval and other necessary regulatory approvals required to proceed with development of the Zambeze Coal Project.
In the event that the milestones are not achieved, the consideration paid to date will be refunded to WISCO, less their share of feasibility study and project costs incurred and WISCO’s interest in the Zambeze project will be returned to Riversdale.
Riversdale Mining Executive Chairman Michael O’Keeffe said: “This is an outstanding result for Riversdale Mining and the company’s shareholders. We have secured the participation of partners that are able to bring investment, logistics experience and proven infrastructure capabilities to develop Zambeze and to deliver its hard coking coal to world markets “Through our Chinese venture partners, we gain funding to develop the mine and a buyer for part of Zambeze’s off‐take. We also gain access to world‐class mine‐to‐ship logistics and infrastructure expertise to facilitate the export of the mine’s coal products,” Mr O’Keeffe said.
Strategically WISCO see considerable value in developing a large hard coking coal resource in Mozambique to supply its new plant in Southern China as well as a proposed steelworks in Brazil. WISCO are also developing an iron ore mine in Madagascar.
Mr Kuang Zhong Xiang, the General Manager of WISCO International Resources Development and Investment Corporation said that the group’s investment in the Zambeze Coal Project represented a major strategic move to a coal basin of increasing relevance to Chinese steel mills.
“We are pleased to be able to work with Riversdale Mining to build a major hard coking coal mine at Zambeze.
The project has the potential to become an important source of coking coal for China and it is based in a region that we recognise to be strategically significant for our future goals. Mozambique is an attractive investment location and has potential to be a significant source of coking coal,” Mr Kuang said.
Mr O’Keeffe said: “WISCO is a steel producer of global significance, servicing export markets and a domestic market that continues to show strong and sustainable long‐term demand for steel products. Our coal will be an important part of their ongoing business, and for this reason we are well suited as partners to bring the Zambeze Coal Project and one of the world’s major coal basins into profitable production.”
Mr O’Keeffe said that the key to unlocking the potential of the Zambeze Coal Project was the ability to deliver efficient coal handling logistics and infrastructure: “We are extremely pleased to have both the Chinese steel business WISCO and the infrastructure group CCCC as part of the consortia working with us to develop, build and deliver coal from Zambeze.”
CCCC has considerable experience in port, rail and airport development having recently completed the Macau international airport. The infrastructure group also has a long association with WISCO on barge operations on the Yangtze River in Wuhan where WISCO has its main blast furnace.
The logistics infrastructure required for the Zambeze Coal Project will involve the development of barging capacity using the Zambezi River and rail capacity to the ports of Beira and Nacala as well as port facilities including loading and rehandling.
“At Zambeze, Riversdale Mining has a Tier 1 hard coking coal project. Importantly, through our agreement with the CCCC we will have access to the largest port construction company in China, a leading company in road and bridge construction and design, a leading railway onstruction company and the second largest dredging company in the world,” Mr O’Keeffe said.
Shares Issued 200,107,524 Market Capitalisation $2,255,211,795 (24-06-10)
ANN stated that "Contribution of US$800 million for 40% participation, values Zambeze Coal Project at US$2.0 billion"
There are Two ‘Tier 1’ hard coking and thermal coal projects in Mozambique –Benga & Zambeze
Benga development on schedule, with Stage 1 production expected in H2’2011
Zambeze PFS progressing
Substantial tenement holding in the Moatize Basin, the next major coal region
Potential exists for future mine developments within Riversdale’s other tenements
ASX AAN yesterday
24/06/2010 8:59:00 AM Zambeze Coal Project
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01073920
MEDIA RELEASE
24 June 2010
Riversdale Mining signs agreements with Chinese venture partners for the development of the Zambeze Coal Project
● MoU signed with Wuhan Iron and Steel Corporation (WISCO)
● Logistics partnership agreement signed with China Communications Construction Company (CCCC)
● Contribution of US$800 million for 40% participation, values Zambeze Coal Project at US$2.0 billion
● WISCO to subscribe for an 8% equity stake in Riversdale
● Secures investment as well as logistics and infrastructure expertise
Riversdale Mining Limited (ASX: RIV) is pleased to advise that the company has signed a non‐binding Memorandum of Understanding (“MoU”) with Wuhan Iron and Steel (Group) Corporation (“WISCO”) and a logistics partnership agreement with the China Communications Construction Company ("CCCC") for the development of the Zambeze Coal Project (“Zambeze”) in Mozambique.
The MoU provides for the acquisition by WISCO of 40% of the Zambeze Coal Project (EPL 946L) in the Tete Province of Mozambique for a total consideration of US$800 million to be paid in three tranches and subject to achievement of certain milestones. When completed, the transaction values Zambeze at US$2.0 billion.
In addition, at the date of signing of the definitive agreements, WISCO will be issued 8.0% of the ordinary shares in ASX‐listed Riversdale Mining at an agreed price of A$10.00.
The Zambeze Coal Project is Riversdale’s second Tier 1 coal project in the Moatize Basin and is adjacent to the Benga Coal Project. The Zambeze Project is similar in structure to Benga with 22 coal seams outcropping over a strike length of 14 kilometres across the northern portion of the tenement. On 31 May 2010, the Coal Resource estimate for Zambeze was upgraded to 9.0 billion tonnes.
WISCO will earn the right to purchase at least 40% of the coking coal produced from Zambeze, and the right to purchase at least 10% of the coking coal produced from the Benga Project, in each case on market terms.
The MoU also covers the facilitation by WISCO, along with CCCC and other Chinese companies, of a comprehensive study of mine‐to‐ship logistics to enable the export of large tonnages of coal products from the Zambeze Coal Project to ports for export markets. WISCO will also facilitate the participation of a number of Chinese financial institutions in arranging the necessary project finance.
The MoU is non‐binding, pending completion of definitive agreements within 120 days of signing the MoU.
WISCO will subscribe for 8% of the ordinary shares in Riversdale Mining Limited upon signing of the definitive agreements. The US$800 million consideration for the 40% interest in Zambeze is subject to achievement of certain milestones and the consideration will take the form of three tranches:
1. US$200 million will be paid on completion and signing of the definitive agreements covering the joint venture for the Zambeze Coal Project;
2. US$150 million will be paid on the successful completion of the feasibility study for Zambeze, subject to meeting agreed milestones including establishing the commercial viability of developing and operating the Zambeze Coal Project to produce not less than 30,000,000 ROM tonnes of coal per annum and evaluation of Zambeze using all the coal resources and reserves; and
3. US$450 million will be paid on the granting of the mining contract, mining licence, final environmental approval and other necessary regulatory approvals required to proceed with development of the Zambeze Coal Project.
In the event that the milestones are not achieved, the consideration paid to date will be refunded to WISCO, less their share of feasibility study and project costs incurred and WISCO’s interest in the Zambeze project will be returned to Riversdale.
Riversdale Mining Executive Chairman Michael O’Keeffe said: “This is an outstanding result for Riversdale Mining and the company’s shareholders. We have secured the participation of partners that are able to bring investment, logistics experience and proven infrastructure capabilities to develop Zambeze and to deliver its hard coking coal to world markets “Through our Chinese venture partners, we gain funding to develop the mine and a buyer for part of Zambeze’s off‐take. We also gain access to world‐class mine‐to‐ship logistics and infrastructure expertise to facilitate the export of the mine’s coal products,” Mr O’Keeffe said.
Strategically WISCO see considerable value in developing a large hard coking coal resource in Mozambique to supply its new plant in Southern China as well as a proposed steelworks in Brazil. WISCO are also developing an iron ore mine in Madagascar.
Mr Kuang Zhong Xiang, the General Manager of WISCO International Resources Development and Investment Corporation said that the group’s investment in the Zambeze Coal Project represented a major strategic move to a coal basin of increasing relevance to Chinese steel mills.
“We are pleased to be able to work with Riversdale Mining to build a major hard coking coal mine at Zambeze.
The project has the potential to become an important source of coking coal for China and it is based in a region that we recognise to be strategically significant for our future goals. Mozambique is an attractive investment location and has potential to be a significant source of coking coal,” Mr Kuang said.
Mr O’Keeffe said: “WISCO is a steel producer of global significance, servicing export markets and a domestic market that continues to show strong and sustainable long‐term demand for steel products. Our coal will be an important part of their ongoing business, and for this reason we are well suited as partners to bring the Zambeze Coal Project and one of the world’s major coal basins into profitable production.”
Mr O’Keeffe said that the key to unlocking the potential of the Zambeze Coal Project was the ability to deliver efficient coal handling logistics and infrastructure: “We are extremely pleased to have both the Chinese steel business WISCO and the infrastructure group CCCC as part of the consortia working with us to develop, build and deliver coal from Zambeze.”
CCCC has considerable experience in port, rail and airport development having recently completed the Macau international airport. The infrastructure group also has a long association with WISCO on barge operations on the Yangtze River in Wuhan where WISCO has its main blast furnace.
The logistics infrastructure required for the Zambeze Coal Project will involve the development of barging capacity using the Zambezi River and rail capacity to the ports of Beira and Nacala as well as port facilities including loading and rehandling.
“At Zambeze, Riversdale Mining has a Tier 1 hard coking coal project. Importantly, through our agreement with the CCCC we will have access to the largest port construction company in China, a leading company in road and bridge construction and design, a leading railway onstruction company and the second largest dredging company in the world,” Mr O’Keeffe said.
