Wednesday, March 18, 2009

Benga Coking Coal Is "Premium Hard"

Riversdale Mining and TATA Steel Limited have advised that first results from the pilot scale coke testing programme for the Benga Exploration Licence have been received.

A coke strength after reaction (CSR)1 result of 71 was produced from the first Benga coke. This indicates the potential for the Benga coking coals to be “premium hard” coking coals. Premium hard coking coals typically have CSRs greater than 65. CSR is one of the key quality parameters used to assess coke quality.

The CSR results released today are preliminary and future results are expected to vary by seam and spatially commensurate with the observed changes in coal rank. However the results are indicative of the potential of the Benga coking coals. Riversdale is currently undertaking a pilot scale coke testing programme and will report summary results upon completion of this programme.

Riversdale Mining CEO Steve Mallyon said, “Coking results continue to confirm that the quality of the Benga coking coals will be equal to the best coking coals sold in the market today. This reaffirms our belief that Mozambique will become a key coking coal supplier to steel mills globally.”

These initial test results are expected to be a filip for Riversdale Mining, with a premium price product with one of the world's lowest cost coking coal resources. A bankable feasibility study is due this quarter with first production due in late 2010.

Source: Proactive Investors

No comments: