🕐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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media & investor relations
louise brugman
managing director
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