Mozambique Government has awarded a mining contract to Tata Steel and its JV
partner Riversdale for the Benga coal project in Africa. The proposed mine is
likely to yield 20 million tpa of the dry fuel.
Tata Steel has a 35 per cent stake in the project besides a secured right for
40 per cent of the produce to feed its Corus facilities in the UK and Europe.
The project which will entail an investment of over $800 million (approx Rs
3,960 crore) is likely to begin commercial production in 2010.
The contract covers all aspects of proposed development of the mine,
including exploration, feasibility, operations, fiscal regime and
rehabilitation, among others.