The Australian reported that in spite of mounting speculation Riversdale will be bid for by a big miner, Riversdale Mining executives will meet potential partner Wuhan Iron and Steel over USD 1 billion coking coal ground and equity deal.

It is understood executive chairman Mr Michael O'Keeffe will meet Wuhan representatives in Hong Kong to discuss the expired AUD 800 million sale of a 40% stake in the Zambeze project in Mozambique and a AUD 190 million sale of an 8% stake in Riversdale. Wuhan representatives are then to arrive in Australia next week.

A MoU between Wuhan and Riversdale expired in October because Wuhan was unable to secure Chinese government approval quickly enough. But in Riversdale's previous quarterly report, the company said both parties remained committed to the deal on the terms previously agreed. As part of the deal, Wuhan will secure the right to buy 40% of the coal from Zambeze and at least 10% of the coal from the Benga project, also in Mozambique. It also involves a logistics partnership with China Communications Construction Company, which with Wuhan, is helping Riversdale access Chinese bank funding.

(Sourced from theaustralian.com.au)