Posted in | Coal | Mining Business

Riversdale Mining Signs MoU with Wuhan Iron and Steel

Wuhan Iron & Steel Corp, the Chinese government controlled steel giant has signed a Memorandum of Understanding (MoU) with Australian company Riversdale Mining Ltd. As per terms of the agreement it will take a 40% stake in a Mozambique mine and a minority share in the Australian miner for US$800 million.

Drilling Benga, Mozambique. Coal Resource of 4.0 billion tonnes has been estimated. Image Credit: Riversdale Mining Pty Ltd

Wuhan Iron and Steel Corporation (WISCO) will make the payments in three tranches. At the date of signing the definitive agreements WISCO will also be issued 8% of the ordinary shares in Riversdale Mining Ltd. at a pre agreed price of $10 each.

Riversdale Mining Ltd also signed a logistics partnership agreement with the China Communications Construction Company (CCCC) for the development of the Zambeze Coal Project in Mozambique. The transcation values Zambeze at USD $2 billion.

Presently the MoU is non-binding, pending completion of definitive agreements within 120 days of signing the MoU. The deal was announced in Sydney and underlined the Sino-Australian ties despite the ousting of Prime Minister Kevin Rudd on Thursday.

Joel Scanlon

Written by

Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, web programming, design, animation, database and networking, software and editing. Joel has been with AZoNetwork since its inception in 2000.

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