Coal Handling

Extended Benga Coal handling and Preparation Plant Contracts for Sedgman

06.05.2010 | Editor: Marcel Dröttboom

Sedgman has been awared contracts for Riversdale’s Benga coal handling and preparation plant.

Brisbane, Australia – On May 4, 2010, Sedgman announced that it has signed contracts worth USD 50 million for the Benga coal handling and preparation plant in Mozambique. These new contracts follow on from a long lead item supply contract, taking the total value of work awarded to the Company on the Benga project to USD 63 million.

The Benga project is being developed by Riversdale Mining and its partner Tata Steel in Mozambique’s Moatize basin through their jointly owned entity, Riversdale Mozambique Limitada. The contracts awarded to Sedgman relate to the USD 270 million first stage of the Benga project and are being delivered by Sedgman Australia and Sedgman South Africa under a tripartite contract with Riversdale Mozambique Limitada. Stage 1 entails processing 5.3 million run-of-mine tonnes per year to produce approximately 1.7 million tonnes per year of hard coking coal and 0.3 million tonnes per year of export thermal coal. The coal handling and preparation plant will be designed for an initial throughput of 800 tonnes per hour with provision for staged expansion to 3000 tonnes per hour. The new Benga contracts follow on from the USD 123 million in engineering, procurement and construction contracts Sedgman won recently in South Africa for Xstrata Coal’s Atcom project at Witbank near Johannesburg and the USD 50 million engineering, procurement and construction contract win for Whitehaven’s Narrabri Coal coal handling and preparation plant project in New South Wales.

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