The Mozambique government today said it is considering global mining giant Rio Tinto's application for stake purchase in Australian firm Riversdale, which has coking coal reserves of 13 billion tonne in the African nation.
"They have made the application and we are considering it," Mozambique's Minister of Mineral Resources Maria Esperenca Bias said, adding that it is a normal procedure as the Rivesdale's mines are in the African country.
She was speaking to reporters here after a meeting with Coal Minister Sriprakash Jaiswal.
Riversdale owns the Benga and Zambezi coal mines in Mozambique, which together house about 13 billion tonne of resources.
Bias also said that production from Benga Project, a joint venture between Riversdale and Tata Steel in the Tete Province of Mozambique, will commence by December this year.
"They are doing well and I hope they (Benga Coal Mines) can start production this year," Bias said.
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Riversdale enjoys 65% stake in the project while the remaining share of 35% is with Tata Steel.
She also said the coal exports from the country is expected to touch more than 3 million tonne in the next year while this year it is likely to be 1 million tonne.
"Next year the export will be probably more than 3 million tonne. This year probably 1 million tonne," the minister said.
Rio Tinto, which has made a takeover offer of Australian dollars (AUD) 3.9 billion for Riversdale in December, today dropped the minimum acceptance condition of having more than 50% stake in the targeted company.
So far, the global mining giant has managed to acquire 41.04% stake in Riversdale and is also talking to "one of major shareholders" of the Australian mining firm.
According to the reports, Rio is in discussions with Brazilian steel maker CSN for acceptance of its takeover offer.
Meanwhile, the Australian Stock Exchange today stopped the trading of Riversdale shares for two days, following a request from the company which is likely to make an announcement later in the day.
However, the two largest shareholders of Riversdale -- Tata Steel and CSN, who together hold over 47% stake in the Australian mining firm, could not be immediately reached for their comments.