Moatize mines extract 22,000 tons of coal in 2010 in Tete, Mozambique

11 January 2011

Maputo, Mozambique, 11 Jan – Mozambican mining company,Minas de Moatize mined 22,000 tons of coal in 2010, said the governor of Tete province, Alberto Vaquina, cited by the Mozambican press.

The amount mined fell below the target set of 48,000 tons, and the provincial governor said that, even so, it exceed the amount mined in 2009 by 20 percent, due to various constraints.

Minas de Moatize was acquired in May 2010 by Beacon Hill, a subsidiary of Beacon Hill Resources, a group listed on the London Stock Exchange, for US$35 million.

Since the acquisition, the company has focused its operations on modernising the equipment and underground mine, and the British group hopes that Minas de Moatize will have a production rate of at least 120,000 tons at the end of 2011.

Meanwhile, as of next June, Brazil’s Vale and Australia’s Riversdale Mining expect to start mining coal in the blocks they have in the same province.

One of the problems facing the two companies is the annual 6 million-ton capacity of the Sena railroad, which is currently the only viable route for exporting the coal mines in Tete. (macauhub)