The market responded enthusiastically to today’s announcement that Riversdale Mining (ASX:RIV) had signed a non-binding memorandum of understanding With Wuhan Iron & Steel Coporation and a logistics partnership agreement with the China Communications Construction Company for the development of the Zambeze Coal Project in Mozambique.
Mozambique is well placed for cost-effective shipping to Riversdale’s key markets China, India and Brazil and the company is looking at using barges on the Zambezi river as a more efficient means of transporting coal.
Riversdale is best known for its operation in South Africa, the Zululand Anthracite Colliery.
Shares in Riversdale Mining closed at a new 52 week high of $11.35, almost 8% higher than yesterday’s close and more than double its 52 week low of $4.95.
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