Rio Tinto PLC (RIO) has tightened its grip on Riversdale Mining Ltd. (RIV.AU) with the appointment of two further directors to the Africa-focused coal producer's board and said Friday it plans to delist the company after its takeover offer closes.

The offer, which values Sydney-based Riversdale at almost $4 billion, was due to close Friday evening but has been extended a further week to May 6, Rio Tinto said. It plans to seek a delisting of the stock after the offer closes.

The Anglo-Australian mining company has been chasing Riversdale since it first made a takeover offer in December, but tentative acceptance by shareholders and a hold-out by two key investors prompted the deadline to be extended several times and pushed the offer price up by 50 cents to A$16.50 a share. Rio's stake in Riversdale rose to slightly more than 73% last week when Brazilian steel producer Cia. Siderurgica Nacional (SID) agreed to sell its more than 19% shareholding. Indian steel company Tata Steel Ltd. (500470.BY) has said it plans to hold on to its roughly 27% stake.

With Riversdale, Rio secures control of a promising coking coal deposit being developed in Mozambique that will be able to feed the appetite for the key steelmaking ingredient in rapidly industrializing parts of Asia, particularly China and India. Riversdale earlier Friday said it continues to develop two projects in the southern African country and continues to expect the Benga mine to produce its first coal for export before the end of the year.

Rio said Doug Ritchie, chief executive of the company's energy division, has been appointed chairman of Riversdale with the departure of William O'Keeffe, who had previously said he would resign when Rio assumed control. It said it also has appointed to Riversdale's board Darren Yeates, chief operating officer of the Australian coal operations, and Rosemary Fagen, vice president of human resources at Rio Tinto Energy.

Rio now has five directors on Riversdale's nine-member board. Tata Steel, which also has an agreement for 40% of the coal produced by the Benga mine, has one member on the board.

"The new board will provide fresh impetus for the swift development of Riversdale's assets," Ritchie said. "We are optimistic about their growth prospects and we have a terrific opportunity to develop a large-scale coking coal resource."

The free float of Riversdale shares not held by either Rio or Tata is now only about 0.65% of the total.

-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094; robb.stewart@dowjones.com
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