British group Beacon Hill Resources negotiates transport of its Mozambican coal along the Sena railroad

9 October 2012

British company Beacon Hill Resources has announced it is negotiating with Mozambican state rail and port company Portos e Caminhos de Ferro de Moçambique (CFM) to be given a quota for transporting coal along the Sena railroad, the company said in a regulatory filing.

Beacon Hill Resources plans to transport coal from the Moatize basin in Tete province to the port of Beira, in Sofala province, both in central Mozambique.

According to the filing, negotiations with CFM are “progressing well” and the company is expected to be assigned a quota by the end of the year.

Beacon Hill Resources currently has around 18,000 tons of coal at the Beira coal terminal and its partner, the Global Coke group, has chosen a ship to carry out the inaugural journey to export the coal mined at Moatize, which is due to arrive at the port of Beira in the last week of October.

The statement issued on 5 October also said that the company had signed a memorandum of understanding with a multinational group with coal mining operations in Mozambique for joint development of cargo management facilities along the Sena line, including facilities to load the coal at the town of Moatize and for processing at the port of Beira.

Beacon Hill Resources is currently carrying the Moatize coal to Beira by road and has a fleet of trucks for this purpose.

The Minas Moatize mine plans to move ahead with plans to expand its capacity from 600,000 tons to 1.8 million tons of unprocessed coal per year by the end of 2012.

Meanwhile, CFM continue to improve the Sena railroad in order for it to reach a projected cargo capacity of 6.5 million tons per year and work on the line is due to be finished by the end of November. (macauhub)