British group Beacon Hill Resources starts mining coking coal in Moatize, Mozambique

1 July 2011

London, United Kingdom, 1 July – British mining company Beacon Hill Resources said Wednesday in London it had started mining coking coal for export at its open air mine in Moatize, in Mozambique’s Tete province.

In a statement issued about its General Shareholders’ Meeting, the company’s chairman, Justin Lewis, said that the coal being mined would be transported to Beira this month, where it would be stored ahead of being loaded onto ships.

Mining at the Minas de Moatize mine initially focused on an underground mine that produced small quantities of coal for domestic use and sale in neighbouring countries, particularly Malawi.

However, since Beacon Hill Resources’ acquisition of Minas de Moatize, the company has re-focused its business on exploration of a large open air mine, which is expected to produce 2.35 million tons of coal per year, of which 900,000 tons will be coking coal.

Although the first shipments of coal to Beira will be by road, the company plans to use the Sena railroad to carry 18 million tons of coal per year.

The statement added that the company did not want to be entirely dependent on the railroad and thus it had organised road transport capable of carrying 500,000 tons of coal per year. (macauhub)