Mozambique - Mining Journal

Mozambique
A supplement to
Mining Journal

2
INTRODUCTION
Open to investment
WELCOME to this supplement,
which provides you with some
information about the mining
opportunities in Mozambique,
and the companies that are
active in the country. The government of Mozambique
welcomes investment by mining companies.
Our country is well endowed with mineral
resources, and has a favourable political and legal
environment, based on the Mining Law of 2002. This
provides an adequate framework for the successful
development of projects in our country.
The Mining Cadastre under our Ministry is well
documented and easily accessible to any interested
party. The mining titles are granted on the basis of
‘fi rst come, fi rst served’.
Among other resources there is confi rmed
prospective mining potential for gold, iron, niobium
and tantalum, limestone, clays, gemstones, heavy
minerals sands, coal and uranium. Vale (from Brazil),
Riverdale (Australia), Kenmare (Ireland) and BHP
Billiton (Australia-UK) are among the companies active
Beira
Inhambane
Maputo
0 100 200 300km
July 2008 Mining Journal special publication Mozambique
in exploration and develop-ment projects. As the
government, our role is to facilitate, regulate and
monitor these mining activities.
Minister of Mineral Resources, Esperança Laurinda Francisco
Nhiuane Bias
Quelimane
Pemba
CONTACTS
Ministry of Mineral Resources,
Minister of Mineral Resources,
Esperança Laurinda Francisco Nhiuane Bias,
34, Avenida Fernão de Magalhães - 1st Floor,
PO Box 2904,
Maputo, Moçambique
Tel: +258 1 42 96 15 /42 56 82/ 32 0618
Fax: +258 1 42 56 80 /42 93 53
Direcção Nacional de Geologia
National Director, Elias Xavier Felix Daudi
380, Praça 25 de Junho - 4th Floor,
PO Box 2904,
Maputo, Moçambique
Fax: +258 21 429216
E-mail: geologia@tvcabo.co.mz
Direcção Nacional de Minas
National Director, Fatima Jussub Momade
380, Praça 25 de Junho - R/C,
PO Box 2904,
Maputo, Moçambique
Tel: +258 21 32 00 24 /32 59 34
Fax: +258 21 42 71 21
E-mail: fmomade@tvcabo.co.mz
Websites: www.mirem.gov.mz
www.dng.gov.mz
www.inp.gov.mz
CONTENTS
Introduction 2-3
Geology and mineral potential 4
Country overview 5
Exploration 6-7
Profi les:
ABM Resources NL 8
Baobab Resources plc 9
Central American Mining &
Exploration Co 10
Riversdale Mining Ltd 11
Published in July 2008 by:
Mining Communications Ltd
Albert House, 1 Singer Street
London EC2A 4BQ
Tel: +44 (0)20 7216 6060 Fax: +44 (0)20 7216 6050
E-mail: editorial@mining-journal.com
Website: www.mining-journal.com
Supplement editor: Chris Hinde
Design and production: Tim Peters, Sharon Evans
Printed by Stephens & George, Merthyr Tydfi l, UK
© Mining Communications Ltd 2008

Developing a
corner of Africa
Although it has suffered from years of strife, and
many of the population are below the poverty
line, there are now signs of economic recovery in
Mozambique, with mining at the forefront
LOCATED in southeastern Africa,
Portuguese-speaking Mozambique has a
strategically-important 2,500km coastline
on the Indian Ocean, with a population of
over 21 million and total area of
801,600km 2 . The capital city is Maputo, with the other
major towns being Beira and Nampula, and the ports
of Quelimane and Nacala.
Mozambique is bound by the Indian Ocean to the
east, Swaziland to the south, South Africa to the
southwest, Zimbabwe to the west, Zambia and Malawi
to the northwest, and Tanzania to the north.
The country has three lakes (Niassa or Malawi,
Chiuta and Shirwa), all in the north, and is drained by
fi ve principal rivers and several smaller ones. The
largest and most important river is the Zambezi,
which divides Mozambique into two topographical
regions. To the north the narrow coastline becomes
hilly inland, with a low plateau, and further west to
rugged highlands (which include the Niassa, Namuli or
Shire, Angonia and Tete highlands) and the Makonde
plateau. To the south of the Zambezi the lowlands are
broader, with the Mashonaland plateau and Lebomo
mountains located in the deep south.
Mozambique has a tropical climate with two
seasons: a wet season from October to March, and a
dry season from April to September. Climatic
conditions vary however, depending on the altitude.
Rainfall is heavy along the coast and decreases in the
north and south. Annual precipitation varies from
500-900mm, depending on the region, with an average
of 590mm. Average temperature in Maputo is 13-24°C
in July to 22-31°C in February.
IMPROVING ECONOMY
At independence in 1975, Mozambique was one of
the world’s poorest countries. Socialist mismanagement
and a brutal civil war from 1977-92 exacerbated
the situation. In 1987, the government embarked on a
series of macroeconomic reforms designed to
stabilise the economy.
These steps, combined with donor assistance and
with political stability since the multi-party elections
in 1994, have led to dramatic improvements in the
country’s growth rate. Infl ation was reduced to single
digits during the late 1990s and, although it returned
to double digits in 2000-06, infl ation slowed to 8% last
year, while GDP growth reached 7.5%.
Fiscal reforms, including the introduction of a
value-added tax and reform of the customs service,
have improved the government’s revenue-collection
abilities. In spite of these gains, Mozambique remains
dependent upon foreign assistance for much of its
annual budget, and the majority of the population
remains below the poverty line.
Subsistence agriculture continues to employ the
vast majority of the country’s workforce. Because of
this, a substantial trade imbalance persists, although
the opening of the Mozal aluminium smelter, the
country’s largest foreign investment project to date,
has increased export earnings.
At the end of 2007, and after years of negotiations,
the government took over Portugal’s majority share
of the Cahora Bassa hydroelectricity company; a dam
that was not transferred to Mozambique at
independence because of the ensuing civil war and
unpaid debts.
Mozambique’s once substantial foreign debt has
been reduced through forgiveness and rescheduling
under IMF initiatives. Debt is now described by the
World Bank as being at a “manageable level”.
MINING’S CONTRIBUTION
Although Mozambique has an agriculturally-based
economy it has suffi cient other natural resources to
sustain development of the forestry, fi shing and mining
INTRODUCTION
industries. It is in an ideal trading location, particularly
because of its proximity to South Africa, but
development has been slow because of the civil war
that destroyed the transport system and other
infrastructure.
The country is not an historically important
producer of minerals, and the chaos and confl ict that
followed the Portuguese departure in 1974 is only
now being reversed. However, Mozambique’s
geographical position has made it an attractive
location to set up mineral-processing plants for
markets inland, and the country could be about to
enter a period of signifi cant growth in the mining
sector.
Indeed, the country is developing a true mining
industry, with Kenmare Resources plc having brought
the US$450 million Moma mineral-sands mine (in the
northern province of Nampula) into production in
May 2007, with the fi rst shipment of ilmenite last
December.
BHP Billiton owns the even larger Corridor Sands
titanium-slag project, although full production is not
envisaged until 2015. Mozambique’s other major
resource is coal in the Zambesi Valley, which is
thought to contain over 2,000Mt, much of this being
of coking quality. Brazil’s Companhia Vale do Rio Doce
(Vale) has acquired the centrepiece property at
Moatize.
In May last year, Mozambique proposed changes
to its mining and oil sector taxes, setting separate
rates for mining activities, production and concession
areas. Mining production tax rates would be 10%
of the value of diamonds and precious metals, 6%
of semi-precious stones, 5% of base-metals and
3% of coal and other minerals. A bill revising
fi nancial incentives for mining activities was also
introduced.
After many years of faltering existence, Mozambique’s
mining sector may fi nally be on the cusp of
change.
PROVINCES
Cabo Delgado
Gaza
Inhambane
Manica
Maputo (city)
Maputo
Nampula
Niassa
Sofala
Tete
Zambezia
July 2008 Mining Journal special publication Mozambique 3

4
GEOLOGY AND MINERAL POTENTIAL
Prospective terrain
AIRBORNE GEOPHYSICS
■ A regional airborne geophysical survey was
successful completed (areas A and B of
26,292km 2 and C of 141,897km 2 )
■ High-density airborne geophysical survey was
successful completed (blocks 1 to 6, covering
136,218km 2 )
■ Geophysical data is stored on a Geosoft DAP
Server, which can be accessed through the
MIS.
July 2008 Mining Journal special publication Mozambique
MOZAMBIQUE has a highly
prospective terrain for the
discovery of metals and minerals.
The country is covered by
Precambrian and Phanerozoic
terrains. The former contains occurrences of
tantalum-niobium, rare earths, gemstones (related to
pegmatites), greenstone-hosted gold, banded iron
formations and graphite. The mineral potential of the
Phanerozoic cover, by contrast, centres on clays, sands,
refractory minerals, heavy minerals, coal and natural
gas. Alluvial diamonds may also occur.
The Precambrian terrains include igneous and
metamorphic rocks of Archaean to Upper Proterozoic
age. In general these older rocks underlie the
northern and western parts of the country, and can
be divided into three large structural units: Archaean
and Paleo-Meso Proterozoic terrains that outcrop
near the Zimbabwe border; and rocks of the
Katanguian orogeny.
The greenstone-hosted gold deposits form a major
target for the application of modern exploration
techniques. The Archaean Manica greenstone belt,
which extends from western Mozambique into
Zimbabwe, has hosted gold production on both sides
of the border, yet knowledge of the fundamental
controls to mineralisation remains largely incomplete.
Similarly, the Tete Complex in north-western
Mozambique offers untested potential for platinumgroup
metals, and in 2006-07 there were reports of
a major fi nd of a mineralised ultra-mafi c intrusive.
In addition, old uranium deposits there have been
re-examined, and airborne radiometry has picked up
some interesting
anomalies.
“Investment in E&D
reached US$220 million
in 2007, compared
with only US$33 million
in 2004”
1 2 0 0
1 0 0 0
8 0 0
6 0 0
4 0 0
2 0 0
0
E&D INVESTMENT
This prospective environment, and the increased
political stability, has led to a sharp increase in
exploration during the past few years. Investment in
exploration and development reached an estimated
US$220 million in 2007, compared with only
US$33 million in 2004.
Airborne geophysical work (see box on left) has
included general surveys of three regions and highdensity
surveys of six blocks.
The government has assisted this effort by commissioning
new geological maps (at scales of 1:250,00
and 1:50,000). These are available in hard copy, PDF
and ArcGIS formats, and include
data on magnetic and radiometric
surveys.
Geochemical maps of the central
area (Gondola and Nhamatanda) are
also available, as are reports on
industrial minerals (for Maputo,
Inhambane, Manica, Tete and Cabo
Delgado provinces).
RESULTS - EVOLUTION OF MINING REGISTER
2000 2001 2002 2003 2004 2005 2006
Valid licenses New Requests Time of Issue Days

Political environment FAST FACTS
MOZAMBIQUE is divided into ten
provinces (as illustrated on p3),
with the capital city also having
provincial status. These provinces
are subdivided into a total of 129
districts, which are further divided into 405
administrative posts and then into ‘localities’.
The political situation in Mozambique has stabilised.
The opposition Renamo party has tended to
dominate the north (which has most of the mineral
resources), and the governing Frelimo party (with
whom Renamo fought a bitter civil war until 1992)
has its principal support in the south of the country.
Fortunately, there has been no repetition of the
violent clashes of 2005 that led to about 50 deaths.
There was, however, an explosion in the army’s
principal arsenal in Maputo in March 2006 that
resulted in over 100 deaths and 500 injuries. Political
tension fl ared up, with accusations of Renamo
sabotage, to the point where South Africa Airways
cancelled fl ights to Maputo, citing “the political
situation”. It was made clear by an independent
investigation immediately afterwards that the cause
was poor maintenance and the situation was
successfully defused.
The Frelimo government is the inheritor of the
disastrous socialism of the 1980s and still clings to
populist aspects of this policy. Land was nationalised
immediately after Mozambican independence in 1975,
and none of the constitutional changes since that date
have changed the legal position that land cannot be
bought and sold.
POLITICAL SYSTEM
Mozambique is a multi-party democracy under the
1990 constitution. The executive branch comprises a
president, prime minister and council of ministers,
with a national assembly and 33 municipal assemblies.
In February 2005, Armando Guebuza (from the
ruling Frelimo party) succeeded Mozambique’s longtime
leader, Joaquim Chissano (who had became
president in 1986 after the death of founding
president Samora Machel). Although Renamo disputed
MOZAL’S POWER
BHP Billiton, with 47% ownership, is operator of the
Mozal primary aluminium smelter located near
Maputo. The other partners are Mitsubishi Corp
with 25%, Industrial Development Corp of South
Africa Ltd (24%) and the Mozambique government
(4%).
Phase I of the project was completed in the
record time of 31 months, from project go-ahead in
May 1998 to full commissioning in December 2000,
six months ahead of schedule and US$100 million
below the budget of US$1.2 billion.
Phase II, a doubling of capacity by constructing a
second potline with a capacity of 253,000t/y, was
completed in 26 months, from go-ahead in June
2001 to full commissioning of all 288 pots in August
2003, seven months ahead of schedule and some
US$195 million under the budget of US$860 million.
This expansion was offi cially opened in October 2003.
the outcome, international monitors concluded that
the irregularities were “probably not suffi cient” to
have changed the outcome.
Mr Guebuza, a wealthy businessman, said he would
continue the economic reforms started by his
predecessor. On taking offi ce he promised to fi ght
corruption, bureaucracy and poverty.
The fi rst local elections in Mozambique were held
in 1998, after some delays, but these were boycotted
by Renamo, citing fl aws in the registration process.
Working through the National Assembly, the
electoral law was rewritten and passed by consensus
in December 1998. Financed largely by international
donors, a very successful voter registration was
conducted in late 1999, providing voter registration
cards to 85% of the seven million potential electorate.
The second local elections, involving some
2.4 million registered voters, took place in November
2003. This was the fi rst time that the main parties had
Mozal has amongst the lowest aluminium
smelting costs in the world, and BHPB is looking for
a further expansion at the facility.
This will depend, however, on securing further
secure power capacity in the region, and BHPB has
been talking to oil and chemical group Sasol
regarding using natural gas from the latter’s
Mozambique gas pipeline.
In the meantime, Mozambique’s production and
export of aluminium will be lower than expected in
2008, due to the electricity shortages earlier this
year. Raitt Marshall, Mozal’s managing director, said
at the end of January that the company had
received instructions to reduce its electricity
consumption by 10% (normal consumption at the
smelter is around 950MW, which makes Mozal
by far the largest consumer of electricity in
Mozambique).
COUNTRY OVERVIEW
Offi cial language - Portuguese
Currency - Metical
Time zone - GMT+2
Dialling code - 258
Entry restrictions - Visa required
participated without signifi cant boycotts. With a 24%
turnout, Frelimo won 28 mayoral positions and the
majority in 29 municipal assemblies, while Renamo
won fi ve mayoral positions and the majority in four
municipal assemblies. In May 2004 the government
approved a new general-election law that contained
innovations based on the experience of the 2003
municipal elections. Presidential and National
Assembly elections took place on December 2004,
and Frelimo candidate Armando Guebuza won with
64% of the popular vote.
This power comes from Motraco, a company
formed by the South African, Mozambican and
Swazi electricity companies (Eskom, EDM and SEB,
respectively), but Motraco draws its power from
Eskom. However, because of the chronic underinvestment
in new plant in South Africa, Eskom is no
longer able to meet the demand from all its clients.
To achieve the required 10% cut in January, Mozal
was obliged to switch off 47 of its 500 pots.
Subsequent negotiations with Eskom has led to a
concentration of pot closures in the oldest smelter
(South Africa’s Bayside plant), so that more power
could be spared for the more modern smelters at
Hillside and Mozal. Nevertheless, the Mozambique
plant is braced for further disruption, and Mr
Marshall confi rmed that the company has been told
by Eskom that it will be fi ve years before the power
supplies are normalised.
July 2008 Mining Journal special publication Mozambique 5

6
EXPLORATION
Mining potential
THERE are only two major operating
mines in the country at the moment:
the Marropino tantalum operation and
the Moma heavy-minerals operation.
Marropino, which has been in
production since 2003, is operated by Noventa Ltd.
This company raised £8 million in March 2007 after
placing 4.6 million shares at £1.75 each in a listing on
London’s AIM. At that time, Noventa said that it aimed
to become one of the world’s largest and lowest-cost
suppliers of tantalum, and that it already had longterm
offtake agreements over a signifi cant proportion
of the tantalum production from Marropino, as well as
run-of-mine morganite (pink beryl) production.
Noventa was expected to produce around
300,000lb of tantalum from Marropino in 2007 at an
average cash cost of under US$27/lb (the mine was
developed at a cost of US$15 million) and to treble
output to more than 900,000lb within two years. This
would make the company the world’s second-largest
producer, accounting for about 15% of global market
share.
The Marropino operation is ramping up to full
production of 440,000-550,000t/y and the deposit
contains suffi cient reserves to support this level for
seven years. The balance of the forecast production
increase would come from the company’s Morrua
operation. One of 12 licences in total, Morrua is due
to come on stream in 2009, producing 350,000lb/y of
tantalum over a ten-year mine life.
Wholly-owned by London-listed Kenmare
Resources plc, the Moma mine entered production at
the end of April 2007. The US$460 million heavyminerals
mine is located on the coast of the northern
province of Nampula.
Development of this project took nearly a decade,
but it is set to be the world’s third-largest, single-mine
titanium-dioxide producer with an annual ilmenite
concentrate output of about 1.2Mt. Sales will be well
over US$100 million annually.
Kenmare made its fi rst shipment of ilmenite from
Moma in December 2007. Charles Carvill, Kenmare’s
chairman, said the shipment (23,000t) was “the big
step which we have all been waiting for”, describing
the event as a “major milestone” for the company.
The Moma project has suffered a series of delays in
achieving production and shipment, with forecasts fi ve
years ago suggesting initial production as early as the
second half of 2006. The mine is designed to produce
800,000t/y of ilmenite, 56,000t/y of zircon and
21,000t/y of rutile.
MINES UNDER DEVELOPMENT
There is considerable exploration and development
activity in Mozambique. One of the most active of
these companies is ArcelorMittal. The world’s largest
steel company signed a memorandum of co-operation
in November 2007 with the government to develop
the country’s steel industry, as well as to invest in
iron-ore and coal mining. The company said that
Mozambique would be a “strategic location to extend
the company’s footprint in Africa”. In return, the
Mozambique Ministry of Industry and Commerce said
ArcelorMittal was a “role model for responsible
development”, and that the ministry fully supported
ArcelorMittal’s developments in Mozambique.
July 2008 Mining Journal special publication Mozambique
In addition to the memorandum, ArcelorMittal
signed a joint-venture agreement with Mozambiquebased
Black Gold Mining Ltd to earn a 35% interest in
the latter’s coal projects in the country. Under the
arrangement, ArcelorMittal agreed to pay
US$2.5 million for the initial interest and to earn a
majority share by paying a further US$2.5 million, and
confi rming proven and probable coking-coal reserves
on the properties.
Another signifi cant player in Mozambique is Brazil’s
Cia Vale do Rio Doce, which in a partnership in
November 2004 with American Metals and Coal
International (Vale: AMCI 95:5), bid US$122 million to
win a tender to develop the Moatize coal deposit in
the central province of Tete (north of the town of the
same name that straddles the Zambesi river). The
government was advised in the tender process by
International Finance Corp, the private-sector arm of
the World Bank. The resource at Moatize is believed
to be well over 2,000Mt, much of it coking coal.
The US$1.4 billion Moatize mine will commence
operations in 2011, with production rising to an
eventual 21Mt/y, which will be washed to produce
about 14Mt/y of export-quality coal. The approximately
7Mt/y of washery rejects would be used as a
power-station feedstock, suggesting a unit capable of
generating over 2,000MW.
This scheme will be dependent on the reconstruction
of the railway from Moatize to Beira, which is
860km long and was comprehensively sabotaged by
Renamo, including the destruction of the kilometrelong
bridge over the Zambezi. In August 2007,
Mozambique announced plans to spend
US$200 million on rebuilding the railway. The
estimated total cost of rebuilding the railway is now
US$375 million, with a scheduled completion date of
mid-2009.
Vale’s studies at Moatzie began in 2004, and after
two years (in November 2006) the company
presented the technical and fi nancial feasibility reports
to the government. This was a major investigation by
any standard: according to a Brazilian media story
these studies contained 22,500 pages and 500
specialists were involved in their compilation. (Vale
has also invested US$6.5 million in several social
programmes in Tete and Moatize.)
One reason for the scale of the study is that Vale
hopes to combine the project with a new primary aluminium
smelter with an annual capacity of more than
500,000t. The project would integrate with its
Aluminio Brasileiro SA (Albras) operations and use
alumina shipped from Brazil (a country that is
attracted by the cheap electric power that the
Moatize project would generate because of Brazil’s
limited coal reserves).
However, Mozambique is currently short of
electricity and construction of the third stage of the
Mozal aluminium plant has been delayed because of
this. As a consequence, in addition to Vale’s powerstation
proposals, the government is currently seeking
investment for new hydroelectric schemes. Of these
the largest is the projected Mepanda Nkua dam, which
would be located on the Zambezi river some 70km
downstream from the existing dam at Cahora Bassa.
This could generate 1,300MW and Chinese interests
are reported to be studying this option.
In October 2007, Vale gave details of its fi ve-year,
US$59 billion global investment plan, which is nearly
three times more than its previous fi ve-year plan,
which spent US$18 billion in 2003-2007. The
programme includes funding for 27 major projects in
nine nations. The new investment budget includes
US$390 million on coal, with most of this being devoted
to Moatize.
OTHER COAL PLAYS
Sydney-based Riversdale Mining Ltd has emerged as a
leading company in Mozambique’s prospective coal
region. This follows the acquisition of extensive new
properties, including 16 tenements (covering an area
of 203,460ha) in the Lower Zambezi Coal Basin
(acquired in October 2006) and seven tenements
(covering an area of 86,620ha) in Mozambique’s Tete
province (acquired August 2007). The tenements are
contiguous with properties already held by Riversdale
and those of Vale.
The combined tenement size now held by
Riversdale is in excess of 290,000ha and makes the
company the largest tenement holder in the Tete-
Moatize area.
During November 2007, Riversdale announced a
major coal resource in its Mozambique coal project.
This follows several months of exploration and drilling
at what the company describes as its “highly
prospective” Benga licence in the Moatize district of
Mozambique.
Based on the drilling results undertaken by
Riversdale, the total inferred coal resource is
estimated at 1,940Mt (in accordance with JORC). Of
this, a total of 1,070Mt is considered to have the
potential to be extracted by open-cut methods.
According to the initial wash-analysis results, the
potential coal products, after benefi ciation, that could
CORRIDOR SANDS
Development of the (Limpopo) Corridor Sands
titanium-slag project was delayed by new owners
BHP Billiton Ltd (following its acquisition of WMC
Resources). This project, located at Chibuto,
180km north of the capital of Maputo, originally
encompassed a port, roads and power lines.
However, BHPB announced early last year that it
was re-examining the capital cost of the project.
BHPB now plans a smaller operation that will
relocate the smelters close to its Mozal
aluminium operation, with only mining and
concentration taking place at Chibuto. Even so,
the company does not plan to move quickly: the
reconfi gured project feasibility study will start
shortly, with full production not envisaged until
after 2015. The new feasibility study will consider
an operation producing 250,000t/y of titanium
slag at the mine site. This will be transported by
truck and rail to the Mozal operation, where a
smelter would be built close to the required
infrastructure.
In March 2007, Alberto Calderon, president of
BHPB’s diamonds and speciality products group,
said that despite reducing the scale of the
minerals sands project, it could still cost up to
US$2 billion. Mr Calderon said the fi rst stage
could cost US$500-550 million.

e produced from Benga include a hard coking coal at
10% ash, a secondary thermal coal product (consisting
of an export thermal coal of approximately 20% ash)
and/or a domestic thermal coal (about 35% ash).
The company has also confi rmed two distinct areas
in the northern part of the licence area as having
open-pit potential. The Benga licence covers an area
of 4,560ha and represents less than 2% of Riversdale’s
total tenement areas.
Riversdale signed a shareholders’ agreement with
the global steel group Tata Steel Ltd in November 2007.
Under the JV, Tata will acquire a 35% interest in the
Benga and Tete exploration tenements, which cover an
area of 24,960ha. A special purpose joint-venture
vehicle has been established to develop the coal
project. Consideration for the acquisition was
A$100 million, for which Tata secures a key position in
the joint venture, as well as a 40% share of the coking
coal off-take and the option to participate on
commercial terms above this level. Tata will also be
strategically positioned to participate with Riversdale in
any future opportunities on the surrounding
tenements.
In May 2008, Central African Mining & Exploration
Co plc (CAMEC) announced that it has discovered a
new coal deposit on its licence area in the Tete
province. CAMEC said the new deposit had been
identifi ed on the L871 concession and resource
drilling was under way to establish a South Africa
Mineral Resource Committee-compliant resource.
Drilling and exploration mapping so far has
indentifi ed eight coal zones on the concession, which
extend to a depth of 250m and remain open-ended,
CAMEC said. The company’s geologists have estimated
that fi ve of these zones, numbers three to seven,
could contain up to 868Mt of in-situ coal comprising
estimated measured and indicated resources of 680Mt
and estimated inferred resources of 188Mt. This has
yet to be verifi ed by consultant SRK Consulting.
Further drilling and geological modelling to increase
and better understand the resource are under way.
Other recent coal-based activity in the country has
included the announcement in September 2007 that
Mumbai-based Gremach Infrastructure Equipments
Projects Ltd had taken a 75% stake in 11 Mozambique
coal mines.
In February 2008, Global Steel Holdings Ltd was
awarded a US$116 million coal licence in Tete
province. According to Mozambique’s mining director,
STRATEGIC PROJECT
In May this year, Vale entered into a strategic
partnership with Japan Oil, Gas and Metals
National Co-operation (JOGMEC) on technology
development for exploration in Africa.
Vale and JOGMEC have agreed to share
information gained at a remote sensing centre to
be established by JOGMEC, the Republic of
Botswana and the Southern African Development
Community (SADC; an alliance of 14 Southern
African countries). The centre, to be located in
Gaborone, Botswana, is being developed in order
to improve basic geological information on the
region by employing Japan’s remote-sensing
techniques. It will also be used to improve the
skills of technical experts in Africa.
Fatima Momade, the Indian company has been given a
fi ve-year prospecting licence for two blocks. She said
it will be possible to extend the licence for a further
fi ve years, but mining would have to commence after
ten years. The licence covers an area of approximately
300km 2 , which has proven reserves of 70Mt.
METALS SEARCH
Australia-based ABM Resources NL has acquired an
interest in the highly prospective Mimosa gold project.
This consists of three exploration licences totalling
960ha in the Odzi-Mutare Achaean greenstone belt in
Mozambique’s central Manica Province.
Artisanal miners have been mining gold from
shallow-sheeted quartz veins at Mimosa for over 20
years, but ABM has reached an agreement to include
their tenements in the project for a royalty.
Geological mapping and sampling by ABM has
identifi ed mineralisation with grades up to 30.1g/t Au
and 0.2% Cu over a strike length of more than 4km.
An RC drilling programme commenced recently.
In June last year, CAMEC withdrew an all-share bid
for ASX-listed uranium company OmegaCorp Ltd
(which was subsequently acquired by Denison Mines
Corp). This was because of OmegaCorp’s decision to
spin off its assets in Mozambique into Mavuzi Resources
Ltd, whose main asset is the eponymous gold-uranium
project, covering 700km 2 around the historic Mavuzi
uranium mine in north-western Mozambique.
Mavuzi has identifi ed a 7km x 1km gold anomaly in
the property through stream-sediment sampling.
Results of soil sampling at the target are pending, and
mapping and ground radiometric work are in
progress. An additional property called Meponda in
the north of the country covers 472km 2 on the
Meponda alkaline igneous complex, which Mavuzi
considers prospective for uranium.
Other metal explorers in Mozambique include
AIM-listed Baobab Resources plc, which (through
wholly-owned Capitol Resources) holds 23
prospecting licences in Mozambique. The principal
assets in the country are the Tete polymetallic deposit
and the Mundonguara copper-gold deposit.
Mundonguara (based on Manica licence 1022L) is
the company’s most advanced exploration project and
includes the Mundonguara copper-gold mine that was
closed in 1989. A prime focus is to defi ne high-grade
copper resources, quantify the copper-gold oxide cap
and determine the extent of haloes, with the intention
of returning the mine to production.
The Tete mafi c complex is described by the
company as being “highly prospective” for hydrothermal
replacement deposits of gold, copper, uranium,
titanium, iron and tungsten.
Baobab’s prospecting licences 1021L, 1025L, 1028L,
1337L and 581L make up the Sussundenga project.
The Bandire gold workings are located to the south
of prospecting licence 1021L, immediately outside the
eastern boundary, but trending into prospecting
licence 581L. The gold mineralisation at Bandire (the
site of an historic gold mine) has been opened up in
extensive diggings by artisanal miners.
In May, Sierra Leone’s largest landholder, African
Minerals Ltd, acquired a strategic interest in Baobab
Resources. African Minerals’ purchase of 11.44 million
Baobab shares represented a 17.6% holding in the
company. Following the purchase, African Minerals’
executive chairman Frank Timis described Mozambique
as “a country which has an investor-friendly
EXPLORATION
GEMSTONE WEALTH
Until recently the northern provinces of
Mozambique were known only for their
pegmatite minerals. The gemstones associated
with them are principally tourmalines and
aquamarines, and there is evidence of
considerable smuggling into South Africa and
beyond.
In addition, there are signifi cant tantalite
resources, and over the years a number of small
mines have opened and closed. Indeed,
Mozambique was once the world’s third-largest
producer of tantalite, mainly from the Muiane
mine and the nearby Morrua mine, but both
were shut down in the 1980s. Muiane is now
being redeveloped at a reported capital cost of
US$11 million.
mining code and which actively encourages foreign
investment”.
Speaking at a conference in London in May, Pan
African Resources Ltd’s chief executive offi cer, Jan
Nelson, commented that in addition to its 74% stake
in three operating gold mines in South Africa (New
Consort, Fairview and Sheba) the company is also
exploring in other African countries. This activity
includes Mozambique, where a prefeasibility study on
the 80%-owned Manica project is under way following
20,000m of drilling on the greenstone belt (Pangea
Exploration Ltd retains a 20% free-carried ownership
in the project).
Pan African Resources increased the resource
estimate at Manica last August by 10% to 1.7Moz of
contained gold. This follows a 56% increase in grade
from 2.96g/t Au to 4.61g/t Au, although the total
tonnage for the resource fell from 16.2Mt to 11.4Mt.
Pan African noted that the increase in grade was due to
an ‘optimisation’ of the width of the mineralised zone,
resulting in narrower widths but higher grades, and the
addition of high-grade zones along strike and to depth.
The in-situ resource grade at the Fair Bride
deposit, the most advanced prospect on the deposit,
has also almost doubled from 2.83g/t Au to 5.49g/t Au,
with the total mineral resource for the deposit
currently estimated at 7.9Mt at a grade of 5.49g/t Au.
The company noted that the Manica resource has
been realised at a discovery cost of only US$1.30/oz.
Speaking at a nickel seminar in London last November,
the managing director of Lithic Metals & Energy
Ltd, Jim Kerr, told delegates that the company is
continuing its exploration activities in Mozambique,
where Lithic owns 100% of the Mavita nickel-sulphide
deposit.
In April 2008, Asia Thai Mining Co announced plans
to acquire all of Pan African Mining Corp’s Madagascan
interests for about C$142 million. Under the deal, Pan
African’s non-Madagascan operations in Botswana,
Namibia and Mozambique, along with C$2.5 million in
cash, would be transferred into a new company.
Other companies active in Mozambique include
African Eagle Resources plc, which is also involved in
Zambia and Tanzania, and African Precious Minerals
Ltd, whose projects include the Monarch project,
where it is earning a 65% stake.
Rio Tinto has heavy sands projects in Xai-Xai,
Chongoene in Gaza province and at Dongane,
Jangamo and Ravene in Inhambane.
July 2008 Mining Journal special publication Mozambique
7

PROFILE
ABM to explore
at Mimosa
ABM Resources NL is an Australianbased
public company focused on
acquisition and exploration of quality
projects with the potential for major
mineral discoveries in Australia and
Africa. The company has acquired interests in the
highly-prospective Mimosa gold project in Mozambique
and iron oxide copper gold (IOCG) projects at
Kandole Hill and Myunga in the copper belt of
Zambia. In addition to its African projects, ABM has
joint ventures in Western Australia on an advanced
volcanic massive sulphide (VMS) exploration project
for zinc at Erayinia, a gold project at Broads Dam, a
base-metals project at Gascoyne and 100% ownership
of greenfi eld base-metal projects at Earaheedy and
Harbutt Range.
The highly-prospective Mimosa gold project
consists of three exploration licences totalling 960ha
and lies in an under-explored Achaean greenstone belt
in Manica Province in central Mozambique. This eastwest
trending Odzi-Mutare greenstone belt extends
into Zimbabwe and has historically produced an
estimated 2.5Moz of gold, mostly from the Zimbabwean
side of the border.
Local artisanal miners have been mining gold by hand
in shallow-sheeted quartz veins and stockworks on
part of the tenements at Mimosa for approximately 20
years. An agreement has been reached with the
artisans to include their ground in the project for a
royalty and there are plans for ongoing support for the
local community in a number of areas. The stockwork
zone, as exposed by the artisanal mining, extends
throughout an area at least 1,000m long x 300m wide.
The veining is not confi ned to a particular narrow
8
ABM Resources is
building a quality
portfolio of exploration
projects in Africa and
Australia
Historic artisanal workings at Mimosa, Mozambique
July 2008 Mining Journal special publication Mozambique
shear but rather extends over a broad area and is
considered to have potential to extend to considerable
depth. More recent geological mapping and sampling by
ABM has identifi ed mineralisation with grades up to
30.1g/t Au and 2,050ppm Cu over a strike length of
more than 4km.
The conceptual model developed for Mimosa is
similar to the deposit at Boddington in Western
Australia. The concept entails a series of deformations
in a brittle granitic rock which provides a favourable
site for hydrothermal alteration and quartz (-sulphide)
-gold veining and a possible copper porphyry system
at depth. An RC drilling programme commenced in
June 2008.
The exploration programme to date has been
employing many local Mozambican people and passing
on exploration knowledge to them. ABM is setting up
its headquarters in the town of Manica, a half hour by
road from Mimosa. Working with local leaders, a
community health centre is planned by ABM.
ABM’s other fl agship project is at Erayinia, which is
located in an underexplored Archaean greenstone belt
southeast of Kalgoorlie, Australia. Extensive RC and
diamond drilling, aeromagnetic and DHTEM surveys by
ABM since 2005 have confi rmed the presence of a
VMS zone at the King prospect.
This is only one of a total of 25 drill targets within
the project area that have been identifi ed within the
40km long greenstone belt, based on geophysical and
geochemical anomalism.
Exploration to date has concentrated on the King
prospect where a mineralised lens of massive sulphides
extending over a strike length of 450m and down-dip
350m has been identifi ed. The lens varies in thickness
from 4-8m with the best assay being 17.9% zinc with
1.6% lead. Recent drilling provided an intercept of 5m
at 10.6% zinc and a diamond drilling programme is
currently underway to test for extension of the
mineralised zone, which remains open along strike and
at depth.
Preliminary drilling and geophysical surveys have
been carried out at several other targets within the
project and all exhibit
anomalism similar
to that encountered at King, reinforcing the view that
Erayinia has the potential to become a new and
extensive base metal province, previously undiscovered.
In Zambia, ABM is preparing to commence
exploration on two IOCG concessions in the copper
belt, totalling 800ha. The joint venture project areas lie
within the Lufi lian Arc, close to recognised copper
producing areas such as Kitwe and Ndola. ABM
intends to undertake detailed geological mapping and
rock chip sampling programmes followed by fi rst pass
drilling in order to test the conceptual IOCG model.
The Gascoyne joint venture base-metal project in
central Western Australia covers an area of mid-
Proterozoic, metamorphosed sediments and volcanic
rocks and is targeting Broken Hill, SEDEX-style, base
metal deposits. A recent RC drilling programme
returned anomalous results of up to 2.9% lead and
0.9% copper.
The Broads Dam joint venture, 40km northwest of
Kalgoorlie, is another quality gold project located along
the highly-prospective auriferous Zuleika shear zone,
which is also host to a number of nearby working
open-cut and underground gold mines. Two drill targets
have been identifi ed at the boundary of volcanogenic
sediments and greenstone rocks that have the potential
to host high-grade gold deposits similar to those
delineated at the nearby Kundana mine.
Over the past two years ABM Resources has built
up an impressive portfolio of highly-prospective
projects, many with potential to become world-class
resources. 2008 will be an exciting year for the
company as many of these projects undergo modern
and systematic exploration for the fi rst time.
CONTACTS
ABM Resources NL
1/141 Broadway
Nedlands
Western Australia 6009
E-mail: admin@abmresources.com.au
Website: www.abmresources.com.au
Tel: +61 8 9423 9777
Fax: +61 8 9423 9733
Ticker: ASX:ABU

Baobab committed
to Mozambique
SINCE listing in February 2007 on AIM in
London, Baobab Resources plc (BAO) has
been hard at work exploring its highquality
project portfolio in Mozambique.
Baobab holds, through its Mozambican
subsidiary Capitol Resources Lda, 25 prospecting
licences spanning six project areas which are
prospective for a range of commodities.
Baobab’s work has focused initially on its two key
assets: the decommissioned Mundonguara coppergold-silver
mine at Manica and the Tete Mafi c
Complex project where extensive vanadiferous
titano-magnetite deposits are being assessed.
MUNDONGUARA PROJECT
The Mundonguara mine recorded production
between 1902 and 1989 when resources were
exploited over 1km of strike to depths of 200m
below surface. The resource grades at the close of
mine ranged between 1.6% and 4.6% Cu, 0.15g/t and
2.99g/t Au, and 1.00g/t and 63.0g/t Ag, and it is
estimated that 500,000t of copper ore were mined
and processed during the production period.
The project is located within the Archaean Odzi-
Mutari greenstone belt near the Zimbabwe border,
approximately 10km from the town of Manica. The
mine is located 2km from the international railway
and 5km from the highway, linking the project to the
deep sea port of Beira and international markets.
Power lines from the Cahora Bassa hydroelectric
scheme pass within 40km of the mine with a spur
running to Manica.
Over the past 12 months Baobab has completed
almost 3,600m of underground diamond drilling and
1,838m of underground channel sampling within the
mine. The channel sampling has been important in
developing the company’s understanding of the mine
geology and mineralisation. Work to date has
warranted the commissioning of a preliminary
resource estimate by international consultancy Coffey
Mining.
This work has been complemented with trenching,
approximately 4000m of reverse circulation (RC) drilling,
extensive MMI soil sampling and an airborne
radiometric/magnetic survey over the broader area of
the prospecting licence. Results and interpretation
have lead to an extension of the strike potential of
the mineralised system to 5km from the initial 1km
strike recognition.
Baobab plans to launch an aggressive pre-feasibility
drilling campaign as soon as is practicable, comprehensively
testing both the mine at depth and its along
strike continuations. On progress made at Mundonguara,
managing director Brett Townsend commented:
“The results to date from the Mundonguara project
warrant the commissioning of a preliminary resource
estimate which we look forward to receiving in the
coming months.”
TETE MAFIC COMPLEX
Baobab holds three contiguous exploration licences
over the Tete Mafi c Complex which are being
explored for Bushveld-style iron ore, base and
precious metal deposits. High-resolution geophysics
has been fl own over these licences indicating near
surface, steeply dipping, highly magnetic bodies
coincident with the Massamba Group of vanadiferous
titano-magnetite deposits. These bodies range in width
from 50m to 450m over strike lengths of 2.5km to
3.5km (the combined strike length is in excess of
8km) and appear at surface as magnetite outcrops
assaying average grades of 49% Fe, 21% TiO2 and 0.3% V,
with bulk density determinations returning an average
in-ground specifi c gravity of 4.3 g/cm3 .
Consultants have been commissioned to determine
the metallurgical characteristics of the deposits and
the economic viability and potential processes for
recovering either a vanadium product or a combination
of pig iron, vanadium and titanium products.
Ben James, the company’s technical director,
commented that: “We believe the results of the
geophysical interpretation signifi cantly upgrade the
potential of the Massamba area to host large tonnages
of ore. Findings of the recent fi eld verifi cation
programme have reinforced the fact that this highly
prospective terrain has experienced limited previous
economic exploration, presenting the opportunity for
making major new discoveries.”
The Tete area is fast becoming a major mining hub
as Vale and Riversdale bring their Moatise and Benga
coal deposits into production, with signifi cant
investment streaming into the development and
refurbishment of the railway linking the coal fi elds
with the port of Beira. The existing Cahora Bassa
hydroelectric scheme, coupled with additional
proposed hydro schemes on the Zambezi and
Riversdale’s planned thermal power plant at Benga,
means that affordable power solutions will be readily
available in the future.
PROFILE
OTHER PROJECTS
The company holds four prospecting licences
overlying lower Proterozoic rocks fl anking the
northeastern margin of the Zimbabwe craton. Baobab
considers this Changara project to be highly
prospective for Broken Hill-type polymetallic base and
precious metal mineralisation. The area hosts
numerous occurrences and deposits of zinc, lead,
manganese, iron ore, fl uorite, copper and silver.
Orientation soil geochemistry has identifi ed
multiple zinc-lead anomalies. An extensive soil
sampling programme has been designed and will be
carried out during 2008 to defi ne drill and VTEM
targets.
The company also has three greenfi eld projects
that are being assessed through extensive streamsediment
sampling campaigns and aeromagnetic
surveys during 2008.
RESPONSIBLE DEVELOPMENT
Baobab embraces its corporate social
responsibility and, amongst its initial work
programmes in Mozambique, it commissioned an
environmental and social baseline study at
Mundonguara. The company is fi rmly committed
to the retention and promotion of staff through
formal and informal training and mentoring
programmes, and it has nurtured a successful
culture of safety that, to date, has seen zero lost
time incidents.
Baobab endorses the UN Millennium
Development Goals and seeks to implement
sustainable initiatives that will assist the local
community in achieving these goals.
Baobab is fi rmly committed to its future in
Mozambique and considers the country to be an
attractive investment destination on both a corporate
and technical level. The country’s revised mining act
and licensing system guarantees security of tenure
while its fi scal policies provide signifi cant investor
up-side. The government’s initiatives in upgrading
infrastructure underline its commitment to encourage
foreign investment in developing the mining sector.
Mozambique hosts highly prospective geological
terrains that have experienced little or no historical
exploration and therefore has the potential for
discovering world-class mineral deposits.
CONTACTS
Baobab Resources plc
Brett Townsend (acting managing director)
brett.townsend@baobabresources.com
Ben James (technical director)
ben.james@baobabresources.com
www.baobabresources.com
Tel: +61 8 9430 7151
Fax: +61 8 9430 7664
July July 2008
2008 Mining Mining Journal Journal special special publication
publication Mozambique
Mozambique
9

PROFILE
CAMEC in Mozambique
In addition to its mining
concerns, CAMEC’s
business in maize and
sugar cane benefi ts the
local population
CENTRAL African Mining & Exploration
Co, the mining exploration and
production company, has been
operational in Mozambique since 2003.
Its interests include 21 coal exploration
licences covering 381,000ha in the Tete Province and a
growing agricultural business.
COAL
The coal fi elds of the Tete Province, Mozambique, have
long been recognised but development has been
stifl ed in the past by economic and political
circumstance. The various sub-basins that make up the
Karoo stratigraphy occupy an area stretching over
350km from Cahora Bassa lake to the Malawi border.
The best known of these is the Moatize basin, where
mining has historically taken place, principally on the
Chipanga seam. Reserves of the Moatize sub-basin are
estimated at 2,400Mt. A further 3,800Mt of coal have
been estimated in two of the remaining sub-basins
(the Mucanha-Vusi and Ncondezi sub-basins) and
there are estimates that this coalfi eld is one of the
largest unexplored coal provinces on the planet.
The fi rst phase of CAMEC’s exploration drilling
delineated approximately 195Mt of coal across three
licences: L842, L876 and L877. As recently announced,
a further large outcropping coal deposit has now been
identifi ed on L871. CAMEC’s geologists have
estimated these fi ve horizons could contain up to
868Mt of potentially mineable in situ coal. Further
drilling along strike is expected to increase this
resource substantially, substantially and the company expects to be
in a position to announce a SAMREC-compliant
resource estimate for licence L871 in the fourth
quarter of 2008.
In addition, CAMEC is particularly interested in the
concessions on the north side of Cahora Bassa lake.
Previous work here by two parties in the 1960s to
1980s involved signifi cant amounts of drilling and
resulted in the estimation of a 3,600Mt resource.
CAMEC’s concessions cover a large part of this
10 July 2008 Mining Journal special publication Mozambique
10
resource and will be evaluated in due course.
Coal in Mozambique occurs primarily in the
‘productive series’ rocks within the lower part of the
Ecca Group. Comparisons are made with the South
African Karoo stratigraphy, although the Mozambique
coals were deposited in more tectonically-active
basins and variations can therefore be expected. The
coal structures were deposited in a cold climate
following a period of glaciation.
AGRICULTURE
CAMEC believes that contributing benefi cially to the
countries in which it operates is key to being
successful. The company’s agricultural business in
Mozambique, DECA, is an example of this approach.
The agricultural operation is going from strength to
strength and has been supported by Armando
Guebuza, the president of Mozambique, who opened
the new facility at Chimoio.
DECA’s grower base exceeds 300,000 farmers and
it currently employs over 250 people. The company
has injected over US$3 million into the local economy
buying maize, which is a substantial uplift for the local
communities and economy. By using its pan-African
trucking and logistics operation, CAMEC offered
subsidence farmers a route to market and also offered
them a decent price for their produce. As a result,
these farmers had an incentive to increase production
and transform their farms into small businesses.
Last year DECA again expanded signifi cantly with
the construction of a further nine 1,000t silos, a
1,000m 2 warehouse for grain storage and a new
continuous-fl ow maize dryer. Storage capacity now
stands at 25,000t on site. In 2007 the company
doubled the amount of grain purchased and at yearend
it had a stock of 23,000t.
Two adjoining properties were purchased recently
to facilitate an expansion programme. This gives DECA
an additional 8ha of land and buildings comprising
houses, warehouses, workshops, etc. DECA’s total land
holding now stands at some 16ha.
Milling continues on a 24-hour basis and a second
mill has been ordered, which is due for installation in
September 2008. This will increase DECA’s capacity to
200t maize meal and 50t cattle feed per day. Demand
is currently exceeding supply, and DECA maize meal,
which is now rated the best in the country, is
penetrating the Maputo market as well as being
available throughout central and southern
Mozambique.
Grinding maize
Going forward, CAMEC intends to expand the
operation into two other provinces by replicating the
installations at Chimoio.
BIOFUEL PLANT
On the back of the success of DECA, CAMEC has
been chosen by the government of Mozambique to be
involved in its US$500 million biofuels project,
Procana. This project will involve the construction of a
plant with the capacity to produce 120 million litres
of ethanol a year. In addition to producing ethanol for
the domestic and regional market, the project will also
produce electricity for local use. CAMEC’s role will
be to demarcate the land for the sugar cane
plantation and make a start on building the ethanol
factory.
Mozambique is just one of a number of African
countries in which CAMEC operates but it is a key
region for the company. The country has great
potential, which is fi nally being realised, and there are
signifi cant opportunities ahead.
CONTACTS
Central African Mining & Exploration
Co plc
18 Park Street, London W1K 2HQ
E-mail: info@camec-plc.com
Website: www.camec-plc.com
Tel: +44 (0) 845 108 6060
Fax: +44 (0) 845 108 0606

Positioned for growth
Mozambique drives shareholder interest for ASX-listed Riversdale Mining
WITH signifi cant holdings in
some of the country’s most
prospective regions, Riversdale
Mining Ltd is well positioned
to participate in the growth of
Mozambique’s mining industry. Shareholders in the
ASX-listed mining company are also set to gain from
the exposure, and the company’s strong and sustained
share-price appreciation over the past year clearly
illustrates the point.
Initially established to develop as a diversifi ed
mining fi nance house, Riversdale has fast-tracked its
growth to become an S&P/ASX100 company and a
US$2 billion stock through strategic investment in a
range of mining opportunities in southern Africa.
At the end of 2005, Riversdale completed the
acquisition of an operating underground anthracite
mine, located in the Zululand coalfi eld of northern
Kwa-Zulu Natal, South Africa (RIV 74%). Product sales
for 2007 were around 785,000t and the mine
currently has a coal resource of over 40.7Mt, with a
mine life of some 16 years at current production
levels.
While the anthracite colliery in South Africa drives
cash fl ow and has helped to put Riversdale on the
investment radar, it has been the more recent
acquisition and development of the world-class
Mozambique coal project that has undoubtedly been
the source of recent shareholder interest.
Mozambique’s railway and related infrastructure is
undergoing a major rehabilitation programme
LARGEST TENEMENT HOLDER
In total, the combined tenement size held by
Riversdale is in excess of 290,000ha. This positions
the company as the largest tenement holder in the
Tete-Moatize area, with an extensive area capable
of supporting long-life operations, and including
tenements contiguous with those held by
Companhia Vale do Rio Doce.
“We see signifi cant opportunities for our coal
Riversdale is running an aggressive drill campaign including
four drill rigs being fully operational around the clock
project in Mozambique, not only for coking-coal
exports but also for thermal coal to be an integral
component of the power-generation sector in the
years ahead. This includes local demand, but will also
involve supplying the increasing needs of the South
African economy,” said Riversdale executive chairman
and CEO Michael O’Keeffe.
During November 2007, Riversdale announced a
major coal resource in its Mozambique coal project.
This followed several months of exploration and
drilling programmes at the company’s highlyprospective
Benga licence in the Moatize district of
Mozambique. Based on the drilling results undertaken
by Riversdale, the total inferred coal resource is now
estimated at 1,940Mt (in accordance with JORC).
Of this, a total of 1,070Mt is considered to have the
potential to be extracted by open-cut methods, with
the confi rmation of two distinct areas in the northern
part of the licence area as having open-pit potential.
Mr O’Keeffe said: “Importantly, and with clear
implications for future growth potential, the stated
resource refers only to the northern section of the
Benga licence. In fact, the Benga licence covers an area
of around 4,560ha and represents less than 2% of the
company’s total tenement areas.”
The company believes that, based on initial
washability analysis results, the potential coal
products, after benefi ciation, that could be produced
from Benga include an export hard coking coal as well
as a secondary thermal coal product.
AGREEMENT WITH TATA STEEL
In November 2007, the company’s view on the
prospectivity of the region was endorsed by one of
the world’s leading steel groups when Riversdale
Mining signed a shareholders agreement with Tata
Steel Ltd. Under the joint venture, Tata acquired a 35%
interest in the Benga and Tete exploration tenements,
which cover an area of 24,960ha in Mozambique for
A$100 million (US$94 million). For the 35% project
interest, Tata has secured a key position in the joint
venture, as well as a 40% share of the coking coal
off-take and the option to participate at commercial
terms above this level.
COAL-FIRED POWER STATION
In other signifi cant developments, in looking to
develop a market for any thermal coal generated from
its future operations, Riversdale signed a memorandum
of understanding (MoU) with Elgas SARL to
review the development of a thermal coal-fi red power
PROFILE
Riversdale Mining was a lead sponsor of MMEC 2008, the
major mining and exploration conference in Maputo
station near Riversdale’s coal tenements. As part of
this project, Riversdale and Elgas will also review the
terms under which Riversdale may sell and deliver
coal produced from its Mozambique coal project to
the new power station.
Any proposed power station would be ideally
placed to service some of the rapidly-increasing
demand for power in the wider region and could also
contribute to overcoming some of the supply issues
that governments and industry in the region are
currently facing. Power provided from this source will
also be used by Riversdale for its Benga coal operations.
KEY INFRASTRUCTURE
Riversdale has been active in progressing discussions
regarding key infrastructure in Mozambique. In
September 2007, the company formally commenced
planning for the transport of any future production
from its prospective coal-mining operations in
Mozambique by the signing of an MoU for rail access
and transportation, and a separate MoU for access to
port facilities at Beira with relevant government
agencies and private sector interests.
The resulting agreements and completed
infrastructure will provide Riversdale with the ability
to transport via rail up to 2Mt of coal in 2010,
increasing to 6Mt by 2015, and ensure access to key
export markets, including India and Europe via new
port infrastructure.
CONTACTS
Riversdale Mining Ltd
Level 1, 50 Margaret Street
Sydney NSW 2000
Australia
E-mail: sinta@rivmining.com.au
Website: www.riversdalemining.com.au
Tel: +61 2 8299 7900
Fax: +61 2 8299 7999
Ticker: ASX: RIV
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July 2008 Mining Journal special publication Mozambique
11

RIVERSDALE MINING LIMITED (ASX: RIV)
PROUD TO BE PART OF THE
RAPIDLY EXPANDING MINING
INDUSTRY IN MOZAMBIQUE
Working with our local suppliers, partners and representatives of the Mozambique
government, Riversdale Mining is building a world class coal mine in the highly
prospective Tete region.
Together we intend to develop a project at Tete that will deliver thermal coal
for the power generation needs of the region, and will also service the increasing
global demand for quality coking coal.
For more information please visit us at www.riversdalemining.com