Wuhan Iron inks $800m coal deal with Riversdale

BEIJING - Wuhan Iron and Steel (Group) Corp (WISCO) on Thursday signed an initial non-binding agreement for $800 million with Australian miner Riversdale Mining Ltd to develop a coking coal project in Mozambique.

Under the deal WISCO will acquire a 40 percent stake in the Tete province, Mozambique-based Zambeze Coal project valued at around $2 billion.

The Chinese steel mill will also purchase an 8 percent stake in the Sydney-based miner for A$10 per share.