new developments soon, page-4

African-based Riversdale Mining has rallied to a record high, having climbed 65 per cent this year, making it the best performer in the S&P/ASX 200 Energy Index.

Mozambique govt will guarantee port/rail access
* Mozambique more attractive investment than S.Africa
Cash-flush private and state-owned Indian entities and some South African junior mining firms have followed Brazilian mining giant Vale's lead in seeking coal assets in Mozambique.
The country risk is on a par with Botswana and it has a stable and democratic government.
The renewal of licences is very quickly achieved and this does not take the same period of time as in South Africa, where the level of bureaucracy is a constraining factor.
South Africa by comparison has limited assets for sale and a burdensome bureaucracy, according to Indian sources.
South African junior miners have said they can get mining licences within a few weeks in Mozambique and Botswana compared with waiting times of up to three years in South Africa.
In Mozambique mining legislation is transparent and the transition from exploration to mining licences is pretty straightforward.
Mozambique's attractive tax regime, low depreciation risk and 3 percent royalty on revenues also make the country strongly appealing to mining investors.
It's clearly an attractive place to invest. There are large existing players there already - BHP Billiton with Mozal, Sasol is planning a gas joint venture, the amount of money Vale is pumping in.
NO LOGISTICS MONOPOLY
Mozambique needs to fully develop its port and rail network to allow large-scale exports from its huge coal reserves, but this is under way and will provide export access even for smaller miners.
The rail line from Riversdale's and Vale's mines to Beira port is being expanded and Beira port is being upgraded to export 20 million tonnes a year.
Logistics are an issue, but this is being addressed and there is substantial government support and funding to build the port and rail capacity needed for coal exports.
When the Nacala corridor is fully developed, this will add another 20 million tonnes of export capacity.
The Mozambique government has said to us they will maintain multi-user access and won't allow export access to be monopolised. There will be other newcomers.