Plans for Beacon Hill Resources to produce 4 million tons of coal per year in Mozambique have been set aside, and the current business plan focuses on increasing production to 1.8 million tons by January 2013, the company said in a statement.
In a statement entitled “Strategic Update” the new board headed up by Rowan Karstel estimated that it needed just US$16 million to increase production to 1.8 million tons by January 2013 and 2.8 million tons by the end of that year, as compared to a cost of US$150 million to achieve production of 4 million tons per year.
Noting that the initial plan remained a possibility if it a partnership with a nearby concession could be set up as a way of extending the lifetime of the Moatize mines, the statements aid that initially the mine would focus on coking coal, which is commercially more valuable.
Rowan Karstel’s board of director also said it was sure that by the end of January 2013 it would be granted room on the Sena railroad to carry coal to the port of Beira and that it had reached a provisional agreement to lease rolling stock.
At the beginning of October, the British company announced it was 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.
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.
Beacon Hill Resources is currently carrying the Moatize coal to Beira by road and has a fleet of trucks for this purpose. (macauhub)