Riversdale, Tata to own Mozambique power plant

Riversdale Mining and joint venture partner Tata Steel have reached an agreement allowing them to fully own the USD 1 bn Benga power plant project in Mozambique, Riversdale said on Thursday.

The coal-powered plant, with initial production seen by 2013/2014, is expected to produce 500-600 megawatts in its first phase and 2,000 MW in later development.

Australia-listed Riversdale said it would own 65% of the plant and India's Tata the remaining 35% after their joint venture agreed to buy a 50% option in the facility from Elgas SARL for an undisclosed sum.

"The parties have agreed that the Benga Joint Venture has the resources and is best placed to accelerate development of the (power plant)", Riversdale said in a statement.

Coal for the power plant will be supplied from the Benga Coal Project, currently under development and expected to produce its first coal in the third quarter of this year.