After months of anticipation and waiting Rio Tinto finally gets its hands on Riversdale Mining. Having taken control of the company Rio Tinto has moved to de-list Riversdale Mining from the Australian Securities Exchange.
It currently owns a 73% stake in the company and has five representatives on the nine member company board. It has also extended its Australian $4 billion takeover offer for the Mozambique focused mining company to May 6, 2011.
Doug Ritchie, the Rio Tinto Energy Chief Executive has been appointed chairman of Riversdale Mining in place of Michael O’Keeffe. Mr Ritchie acknowledged that the contribution of his predecessor made Riversdale Mining the business it was today on the verge of a significant growth phase.
The first bid made by Rio Tinto on December 23, 2010 has now been extended five times. The initial $16 per share bid has now been increased to a $ 16.50 per share bid. Tata Steel still maintains it 27% interest in the company. One of Riversdale's key projects, Benga, is a joint venture between Riversdale Mining which holds 65 per cent and Tata Steel holding the remaining 35 per cent. It is in the Tete Province of Mozambique and has identified coal resources of 4 billion tonnes and a coal reserve of 502 million tonnes.