Rio Tinto plans to de-list Riversdale

Rio Tinto has assumed control of the Riversdale Mining Limited (Riversdale) Board with the appointment of two new directors and will seek to de-list Riversdale following the end of its takeover bid that enabled it to get a 73-per cent controlling stake.

Tata Steel owns the remaining 27-per cent stake in Riversdale which owns among the richest coal mines at Benga in Mozambique that are estimated to hold over 500 million tonnes of coal.

Though Tata Steel is keen to retain its stakeas it owns aa 35 per cent participating interest in the Benga deposits and the right to buy 40 per cent of the annual output, it would have limited ownership options once the Australian coal miner is delisted.

DNA newspaper quoted an unnamed Rio executivve saying, ''Tata Steel can continue to hold its stake even if Riversdale is delisted.''

Rio has extended the tender offer period by one week till  next Friday, 6 May 2011, unless it is further extended.

Riversdale chairman and director William O'Keeffe has stepped down and was yesterday succeeded by Rio Tinto Energy chief executive Doug Ritchie. Earlier on 7 April Ritchie, along with Rio Tinto Energy chief development officer - coal, Matt Coulter, and Rio Tinto Australia managing director David Peever had joined the Riversdale Board.