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Riversdale Mining updates on Benga Coal Project
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Monday, 01 Nov 2010
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Health and safety
The health and safety performance of the Benga project improved over the quarter. The project has now recorded 41 injury free days in succession and has accumulated 149 days without a lost time injury and 900 days fatality free. Weekly senior team walk about inspections are being conducted and immediate action taken to remedy sub standard practices. The Project base line risk assessment has also been revisited, revised and updated.

Major contracts awarded
The mining contract for Benga Stage I, awarded to MCC Contracts Pty Limited, and the Coal Handling and Processing Plant Design, Supply and Construction contracts awarded to Sedgman Limited, are in place. Both major contractors now mobilized to site and construction operations are currently underway. Significant CHPP plant materials and equipment are being received on site. The first heavy mobile equipment is currently being road transported through Zimbabwe.

The ROM dump station and conveyor belts contracts have been awarded and engineering design is progressing well with the long lead items on order. Preparations are underway to submit the documentation for the local construction license in order for the onsite construction work to start.

The on mine 22kV medium voltage distribution contract has been awarded and the main consumer switchyard and substation terrace has already been constructed. Site surveys of the on mine 11 kilometer of secondary overhead lines have been concluded and the engineering design is underway. This system will cover the CHPP, the ROM dump station and conveyor belts as well as the mining facilities and all ancillaries.

Construction activities
Monthly safety and health contractors meetings are being conducted and are contributing to improvements in the safety performance and achievements. Mining facilities, bush clearing and earthworks have been completed in anticipation of the civil works which will commence during the December quarter. The concrete batch plant was mobilized during the quarter and concrete mix design trials completed.

Foundations for the CHPP, ROM dump stations, fuel bays and other structures commenced during the quarter. The lead CHPP Design and Construction group Sedgman have establish on site supervision of the project. The CHPP will receive priority as the majority of the initial construction work is taking place on this platform.

The concrete batch plant being prepared for first concrete pour
The Matambo power supply project is being executed in conjunction with Vale. The project is on schedule and aligned to provide power to the mine site by April 2011. Both 45MVA 220/66kV transformers are en route from Spain and the PASS 100 switching units are already on site at the Matambo substation. The power line pylons have also started arriving.

Project schedule
The latest updated project schedule depicts that the first coal will be available for export at the port of Beira towards the end of 2011. Project elements identified as critical path items are the rail siding at Moatize and commissioning of new port building equipment at Beira.

Infrastructure
The fuel supply tender has been awarded for the fuel and lubrication supplies to the Mining and CHPP operations. Temporary services have been established which will later be replaced by permanent facilities as demand increases in future. Major on and off site depots have been located and will be constructed to support the timetable demand.

The Moatize rail siding and haul road earthworks and terrace designs are well advanced and the EIA is in the process of review. Tender packages are being issued and responses reviewed and the majority of long lead items are on order.

Engineering design is continuing at the Beira port berth 8 terminal with construction work expected to commence by the end of October 2010. The major long lead items including a new stacker and ship loader have all been ordered.

After extensive analysis and research, Riversdale is in a position to place orders for locomotives and wagons to accommodate the movement of product from Moatize to the refurbished Beira port. These orders will be placed in the next quarter to ensure that they are available in advance of first production. Benga will commence operations as a fully integrated project with its own rolling stock and port handling capacity.

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