London, United Kingdom, 24 Feb – The definitive economic feasibility study for the Minas do Moatize coal mining project in Mozambique concludes that it is a “technically and economically robust,” coal mine, Beacon Hill Resources said Wednesday.
The mine, located in Mozambique’s Tete province, has 42.65 million tons of reserves and a saleable quantity of 23.46 million tons, of which at least 8.72 million is coking coal.
This amount of reserves, the study said, allows for annual production of 2.2 million tons of coking and thermal coal for a period of 11.5 years.
According to a statement published on the company’s website, the feasibility study concludes that the sale of the existing coal would provide pre-tax income of US$662 million, and the cost of running the mine is estimated at US$166 million.
Beacon Hill Resources signed a memorandum of understanding with Basil Read Mining which will lead to a contract for exploration of the mine by the South African company.
The economic feasibility study is based on the idea that the coal mined will be initially transported by road to the port of Beira until such time as it can be carried along the Sena railroad. (macauhub)