British mining company Beacon Hill Resources has reached a provisional agreement with Mozambican state rail and port company Portos e Caminhos de Ferro de Moçambique (CFM) under the terms of which it will have the right to transport 500,000 tons of coal per year along the Sena railroad, the company said in a regulatory filing.
According to the statement issued via the Australian and London stock exchanges, Minas Moatize Limitada, the Mozambican subsidiary of the Australian company, the agreement signed by the Mozambican state company will be valid from April onwards.
Beacon Hill is the concession holder of a coal block in the northern Mozambican province of Tete where its subsidiary has an open air mine which has, thus far, transported its coal by road to the port of Beira, in Sofala province.
The provisional agreement is automatically renewable until the two sides sign a long term agreement and, according to the company’s chairman, Justin Farr-Jones, is recognition of the investment that Beacon Hill Resources is making in rolling stock in 2013.
In the statement, the company also said that as of next April Minas Moatize Limitada would start operating with two trains, each with two locomotives and 42 trucks each with a capacity of 63 tons. (macauhub)