Anglo American PLC (AAL.LN) looked at making an offer for Mozambique-focused Riversdale Mining Ltd. (RIV.AU) but didn't think it was in the interest of shareholders, the company's chairman said Thursday.

"We looked and didn't think it was in shareholder interest," John Parker said. "There were serious issues about transportation."

He also said that Rio Tinto PLC (RIO), which has made an offer to purchase all of Riversdale's shares in a deal that values the company at almost $4 billion, is paying a high price. Rio has so far secured a 72% interest in Riversdale.

Riversdale has identified 13 billion metric tons of coal in an area of Mozambique, attracting the attention of mining and steel companies on the promise it could rival Australia's coal-rich Bowen Basin in the production of coking coal, a key ingredient used in steelmaking.

Riversdale plans to export coal from its Benga project in Mozambique for the first time this year, transporting it by rail to the port of Beira, but there have been issues with the timetable for completion of the railway line. Riversdale is also considering barging the coal down the Zambezi river.

-By Alex MacDonald, Dow Jones Newswires, +44 (0) 7776 200 924, alex.macdonald@dowjones.com
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