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Rio Tinto claims control of Riversdale

Publishing Date
08 Apr 2011 10:06am GMT
Author
Mining Journal
Rio Tinto has finally secured a majority stake in Riversdale Mining Ltd after chasing control of the company for almost four months.

Acceptances from Riversdale shareholders for the A$16.50/share deal passed 50% on April 8, Rio Tinto said. The group’s stake is likely to rise further with the offer period remaining open until April 20.

Earlier this week, Riversdale appointed Rio Tinto senior management Doug Ritchie, Matt Coulter and David Peeler to Riversdale's board of directors. Additional appointments are now also expected to recognise Rio Tinto’s majority interest in the coal producer.

Mr Ritchie, Rio Tinto energy chief executive, said: “The new Riversdale board will reflect our majority shareholding and help clear the way for the development of Riversdale’s assets as quickly as possible.”

The acquisition provides Rio Tinto with coal mining and exploration projects in Mozambique such as the Benga and Zambeze developments.

Mr Ritchie said: “The growth prospects for the Riversdale assets are considerable. We remain optimistic about the outlook for the global coking-coal market. This is a great opportunity for our business to deliver on the development of a large-scale coking-coal resource.”

Meanwhile, Rio Tinto has approved US$238 million to advance a feasibility for extending the life of Kennecott Utah Copper’s Bingham Canyon mine in Salt Lake City. Funds will also be used for the purchase of related long-lead time equipment.

Rio Tinto said the study would look at extending the mine’s life from 2019 to 2028 through pushing back the south wall and constructing supporting infrastructure and equipment.

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