The Company became a leading coal enterprise in a major emerging coal region following an agreement to acquire the following exploration tenements in Mozambique:
• 16 coal bearing tenements covering an area of 203,460 hectares located in the Lower Zambezi Coal Basin were acquired during October 2006.
• 6 tenements covering an area of 53,220 hectares located in the Tete province were acquired during August 2007. These tenements are contiguous with tenements already held by Riversdale and those held by one of the world’s largest mining groups, Vale (formerly CVRD).

The combined tenement size now held by Riversdale is in excess of 250,000 hectares in the Tete-Moatize area, with an extensive area capable of supporting long life operations in this emerging and highly prospective region. The region is within economic reach of the East African coast, with access to the port of Beira by means of a railway line from Moatize that is being rehabilitated.

Benga Coal Project
During April 2009 Riversdale announced updated Resource and Reserve statement for the Benga Coal Project (EL 881L) in the Tete Province, Mozambique. The Benga Project is held in a joint venture between Riversdale Mining Limited (65%) and Tata Steel Limited (35%). Based on the data collected from recent drilling activities, a Coal Resource of 4.0 billion tonnes has been estimated. Of this amount, 1,033.9 million tonnes (Mt) is the combined total for Measured and Indicated Resources and 893.4 Mt of these are at a depth of less than 500m.

An initial Coal Reserve of 273.3 million tonnes has been estimated. Of this, 181.3 Mt are Proved Coal Reserves and 92.0 Mt are Probable Coal Reserves. These Reserves have been estimated in accordance with a review that anticipates an initial Run of Mine (ROM) development of 5.3 Mtpa, increasing subsequently to 10 Mtpa and ultimately 20 Mtpa as transport infrastructure become available.

The Company has also received in April 2009 approval from the Government of the Republic of Mozambique for the Benga Coal Project Mining Contract. This Mining Contract establishes the particular terms which govern the development and implementation of the Project and covers all aspects of the proposed development including exploration, feasibility, development, operations, fiscal regime, rehabilitation and final mine closure requirements.

The Company signed a shareholders agreement with the global steel group Tata Steel Limited on 30 November 2007. Under the JV, Tata acquired a 35% interest in the Benga and Tete exploration tenements, which cover an area of 25,000 hectares in Mozambique. A special purpose joint venture vehicle has been established to develop the coal project. Consideration for the acquisition of the 35% Project Interest is A$100 million for which Tata secures a key position in the joint venture, as well as a 40% share of the coking coal off-take and the option to participate on commercial terms above this level. Tata will also be strategically positioned to participate with Riversdale in any future opportunities on the surrounding tenements.

Zambeze Project
During October 2009 Riversdale announced the initial Resource statement for the100% owned Zambeze Coal Project (EPL946L) near Tete in Mozambique, adjacent to the Benga Coal Project. The Zambeze Project is the company’s second major coal project in the Moatize Basin and is similar in structure to Benga with 22 coal seams outcropping over a strike length of 14 kilometres across the northern portion of the tenement. The total Coal Resource is estimated to be 1.70 billion tonnes, categorised as Indicated Resources in accordance with the JORC Code (2004). The tenement EPL946L is characterised by relatively flat topography and is adjacent to excellent infrastructure including the city of Tete, power, water, sealed roads, rail, an international airport and direct access to the Zambezi River.