When the winner of the bidding for the Chickaloon coal leases was announced at a meeting of the Resource Committee of the Mental Health Trust Land Office, there was some confusion over who controlled RiversdaleAlaska. The first explanation was that it was a subsidiary of Rio Tinto, which would mean that Big Coal was coming to the Valley. The MHTLO is now backing off that statement, contending that the owner of RiversdaleAlaska, Riversdale Resources is a separate company.
But one way or another, Big Coal is coming. The people who control Riversdale Resources are three high officials of Riversdale Mining, the company Rio Tinto acquired in a take-over in June 2011.
Riversdale Mining was itself a huge player in coal projects in Mozambique. Its Benga Mine is expected to produce 5 million tons of coal a year, apparently rising to a potential of 20 million tons in 2016. http://www.resourceinvestor.com/News/2010/4/Pages/Riversdale-Mining-Opens-Benga-Coal-Project-in-Mozambique.aspx
The Alaska Mental Health Land Trust has announced the results of the competitive bidding for Chickaloon Coal leases. Riversdale Alaska, a company that appears to be owned by Anglo-Austrailian mining giant Rio Tinto is your new neighbor. Click here for more information. And here for even more. Good luck folks, Rio Tinto is one of the world’s largest mining corporations, and they have a long record of abusing communities, employees, and the environment. This should be a wake up call to those who think that coal mining will be a good thing for the MatanuskaValley.
If this concerns you, it is time to get involved. The next step for the company will be to apply for exploration permits with the DNR. There will be multiple opportunities for the community to have input into this process. We will do our best to keep you posted of all developments.
Here is the press release that the Trust issued today:
NEWS RELEASE
FOR IMMEDIATE RELEASE
Contacts: Greg Jones
907-269-8656
greg.jones@alaska.gov
Marcie Menefee
907-269-8753
marcie.menefee@alaska.gov
Riversdale Alaska Top Bidder, Offering $3 Million for Mat-Su Coal Lease
Development Could Produce Long-Term Revenue for Mental Health Programs
ANCHORAGE (January 5, 2012) – The Alaska Mental Health Trust Authority’s Trust Land Office (TLO) today announced Riversdale Alaska LLC is the apparent high bidder for 9,927.60 acres of potential coal-bearing lands in the Mat-Su Valley. Riversdale submitted a bonus bid totaling $3 million.
The single tract near Chickaloon is believed to contain high-quality, low-sulfur bituminous coal. Riversdale will need to secure an exploration permit from the Department of Natural Resources in order to evaluate the geology and determine if any of the coal resources can be mined.
Riversdale Alaska LLC is a wholly-owned subsidiary of Australian Riversdale Resources Pty Ltd. Riversdale management were previously involved in the development of the Benga Coal Project, an anthracite coal mine in Mozambique, that was purchased by Rio Tinto Ltd for A$ 4.0 billion in late 2010.
In addition to Riversdale, the TLO received bids from Usibelli Coal Mine, Inc., Alaska Mining and Energy Co., and Arctic Coal LLC for The Trust’s coal holdings in the historic Chickaloon coal mining area.
Annual rent for this lease offering is $4 per acre per year, adjusted in five-year intervals. The Trust will receive a royalty of 5 percent of the gross value of any coal mined and sold from the land. The goal for issuing any coal or mineral lease by the TLO on Trust land is to obtain royalty payments for the value of the resource and to provide a long-term revenue stream for beneficiary programs.

