Johannesburg, South Africa, 8 April – Beacon Hill Resources has signed a memorandum of understanding with Global Minerals & Metals for the potential acquisition of a coal asset in Mozambique for pUS$42 million, the company said in a statement published on its website.
The asset in question, known as License 1165L, is located in the Moatize coal basin, in Tete province, and it is estimated to contain over 450 million tons of coal with a low ash level, which means it can be used by the steel industry.
It is also very close to the Moatize Mines, a metallurgical coal mine owned by Beacon Hill Resources, which is the only mine currently producing coal in Mozambique.
In the statement, the company’s chief executive, Justin Lewis said that, once it has been concluded, this acquisition would increase Beacon Hill’s coal resources in Mozambique five-fold.
Beacon Hill Resources is listed on the London Stock Exchange’s Alternative Investment Market (AIM) and its business is focused on developing a portfolio of assets associated to the steel industry. It has a coal mine in Mozambique and a magnesite (magnesium carbonate) mine in northwest Tasmania. (macauhub)