🕐21.06.11 - 10:27 Uhr

RIVERSDALE TO SELL ZULULAND COLLIERY



Hi The below piece appeared in the Business Day today.

Should you be interested in a follow up interview with MD of Riversdale, Steve Mallyon, please let me know.


Riversdale anthracite mines put up for sale Australias Riversdale Mining is looking for buyers for its anthracite mines in KwaZulu- Natal.

ALLAN SECCOMBE Published: 2011/06/21 07:22:59 AM AUSTRALIAs Riversdale Mining, which has been bought by Rio Tinto, is looking for buyers for its anthracite mines in KwaZulu- Natal, but it will not rush the sale, said Riversdale MD Steve Mallyon, yesterday.

Rio Tinto had its focus on Riversdales big coal project in Mozambique and made it clear early on that it was not interested in the anthracite operations near Vryheid because they were too small and anthracite was too specialised a product. More than 30 groups have expressed an interest in the mines, which produce about 700000 tons a year of saleable anthracite, which is used in chemical reactions and as a reductant in metallurgical processes. "My expectation is it will take us to the end of the year to conclude something on Zululand Anthracite Colliery because we have to do a first-class job," Mr Mallyon said.

Riversdale has set up a team to screen potential buyers and weed out those who would bleed the operations of cash. Private equity groups to offtake partners, trading companies and large and small mining companies from SA and abroad have expressed an interest in buying the mines, which have a life in excess of 20 years.

"Its not often in the coal sector that long-life assets come up for sale," Mr Mallyon said. "The worst thing we can do is have a rushed sale," he said.

"Rio dont want the asset to come back and haunt them." "Ive made a commitment to the staff that we will find a credible, competent mining group that has social development credentials.

There are certainly not 30 parties with those credentials among those who are interested," he said. Rio will make a compulsory acquisition of Riversdale after the acceptance by Tata Steel of all of its shareholding in Riversdale into Rio Tintos $4bn takeover offer.
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