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Riversdale Mining [ASX: RIV] - Benga Coal Project officially opened by the President of the Republic of Mozambique

Riversdale Mining Limited (ASX: RIV) is pleased to advise that the President of the Republic of Mozambique, His Excellency Armando Emilio Guebuza, today attended a formal �Ground Breaking Ceremony� at the Benga Coal Project (Riversdale 65%, Tata Steel 35%) to signify the official opening of the mine.



The official ceremony follows a series of milestones already achieved by the company in Mozambique.

These include the signing of the Mining Contract, and approval of the Environmental License for the Benga Coal Project and the Benga Power project.

Other key contracts and agreements include the CHP Plant Supply Contract, a Resettlement Action Plan, and the Project Labour Agreement (PLA) which was signed with SINTICIM (the Mozambican National Construction and Mineworkers Union).

Riversdale Mining Executive Chairman Michael O�Keeffe said that the Company was honoured to have the President His Excellency Armando Emilio Guebuza officially open the mine, with senior representatives of government and industry in attendance including the Minister of Mineral Resources her Excellency Minister Esperanza Bias.

�Today�s ceremony signals the beginning of a program of works and investment that will eventually see over $1 billion expended on developing a major coal mine at Benga.

This will also be one of the most significant foreign direct investment projects in Mozambique,� Mr O�Keeffe said.



Around 15 per cent of the project�s capital expenditure will be spent in the local market, creating opportunities for the local small businesses and industry in the Moatize region.

These include the supply of construction materials, furniture, office equipment and vehicles as well as the provision of services such as catering, vehicle and plant hire, cleaning, electricity and plumbing, transport, building, hospitality and banking.

Mr O�Keeffe said that Riversdale Mining employs over 150 people at the Benga Coal Project, representing over 90 per cent of the company�s total employees in Mozambique, and that the mine will create jobs directly and indirectly for up to 4500 people around Tete over the next five years.

The anticipated multiplier effect of the hard coking and thermal coal mining project underlines the significant long-term and positive impact that the Benga Coal Project will have on the local and regional economies.

It will also have a role to play in stimulating economic growth around the development of the Nacala and Sena Railway Lines, and around the Zambezi River when barging is confirmed by Riversdale Mining as a viable and sustainable option to transport coal.



Riversdale Mining in Mozambique

Riversdale Mining currently holds a dominant landholding position in the emerging coal regions of Mozambique.

The company has 21 exploration licenses, covering over 250,000 hectares adjacent to excellent infrastructure, including the city of Tete, power, water, sealed roads, rail, an international airport and direct access to the Zambezi River.

Currently, Riversdale Mining is building a multi-billion-tonne coal inventory on only a fraction of the tenements it holds.

The Company�s first project � on the Benga license � represents less than 8% of Riversdale Mining�s total holdings, yet it has already proven significant quantities of coal.

The neighbouring Zambeze project (100%-owned) also has large quantities of coal.

As in Benga, this includes premium hard coking coal and also thermal coal � resources both highly sought after globally.

The company believes the scale of the resources at Benga allows for cost-effective open cut mining, with the potential to produce 20 million Run of Ming (ROM) tonnes of coal per year for a period of more than 25 years.

In April 2009, the Government of Mozambique gave the Benga Coal Project the green light by approving the Mining Contract that was lodged by Riversdale Mining.

Subsequently, in October, Riversdale Mining and JV partner Tata Steel (35%) announced the approval of Stage 1 of the Benga Coal Project, following the review of the Feasibility Study.



The project approval involved the commitment of US$270 million (excluding working capital) to undertake the initial Stage 1 development of the project, which entails initial production of 5.3 million ROM tonnes per year to produce approximately 1.7Mtpa of high quality hard coking coal and 0.3Mtpa of export thermal coal.



W M O�Keeffe
Executive Chairman
Riversdale Mining Limited


For further information:

Michael O�Keeffe
Executive Chairman
Ph: +612 8299 7900

Steve Mallyon
Managing Director
Ph: +612 8299 7900

Niall Lenahan
Finance Director
Ph: +612 8299 7900

or

Media: Fortbridge
Bill Kemmery
Ph: +612 9331 0655
Mob: +61 400 122 449