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Riversdale Mining [ASX: RIV] - Benga JV to secure 100% of the Benga Power Plant

Riversdale Mining (ASX: RIV) has announced today that its Benga Joint Venture (with Tata Steel) will secure 100% of the Benga Power Plant.

Key points:

* Riversdale has reached an agreement with Elgas S.A.R.L, its former joint partner in the Benga Power Plant (�BPP�), to acquire its option as to its 50% interest in the BPP
* The Benga Joint Venture (65% RIV / 35% Tata) will move to full ownership of the BPP
* The BPP is an attractive investment and is scheduled to deliver power in 2013 / 2014

The Benga Power Plant (BPP) was held jointly by the Benga Joint Venture (65% RIV / 35% Tata) and ELGAS S.A.R.L, who held an option as to 50% exercisable in certain circumstances.

Following discussions with ELGAS S.A.R.L., the parties have agreed that the Benga Joint Venture has the resources and is best placed to accelerate development of the BPP.

ELGAS S.A.R.L.

has made a valuable contribution in advancing the Project and has facilitated receipt of regulatory approvals in Mozambique.

The Agreement with Elgas S.A.R.L requires the transfer of the BPP to a new entity such that the BPP will be owned wholly by Riversdale and Tata in their respective JV % interests.

Moving to full control of the BPP will accelerate the development of the Project, enable Riversdale to secure the strategic value embedded in the Project and will facilitate the introduction of Strategic Equity Investors who will develop the Project.

Background

The Benga Power Plant Project is a USD 1billion project that is progressing rapidly towards initial production in 2013/14.

Phase 1 of the BPP will produce 500MW to 600MW of power and will be followed by an expansion of up to 2,000MW in line with the proposed development of the Mozambique Backbone Transmission Project.

Power from Phase 1 is to be distributed to South Africa via existing transmission infrastructure (220MW), locally to Riversdale�s Benga and Zambeze Projects and to the domestic power network.

The fuel for the power station will be supplied by the Benga Coal Project which is currently in development and is scheduled to be producing first coal in the 3rd Quarter of 2011.

Please find more in the attached announcement.

For further information, please contact:

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


Steve Mallyon
Managing Director
Ph: +612 8299 7900


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