Bloomberg reported that TATA Power Ltd India biggest electricity generator outside state control may buy coal from a mine in Mozambique being developed by Australia Riversdale Mining Ltd.

Mr Steve Mallyon MD of Riversdale said “TATA Power is one of the many interested Indian off takers for our thermal product. There is also growing interest from a number of Indian cement producers because of the product’s energy content.”

TATA Power which said recently the net profit fell 28% is looking for new sources of fuel as Indian utilities plan to double generation capacity in the next seven years. The company paid USD 1.3 billion in March 2007 to buy stakes in two Indonesian coal mines owned by PT Bumi Resources.

Riversdale and TATA Steel Ltd India biggest producer of the metal, approved development of a USD 270 million coal mine in Mozambique with first production scheduled for next year.

Sydney based Riversdale said in a statement to the Australian stock exchange on October 28th production in the first stage of the Benga project will be an estimated 1.7 million tonnes of coking coal and 300,000 tons of thermal coal for export.

Riversdale said in the statement the venture is considering a second stage expansion by 2014 to boost output to 3.3 million tonnes of coking coal, used in steelmaking and 2 million tonnes of thermal coal, used by power stations. TATA Steel owns 15% of Riversdale.

(Sourced from Bloomberg)