Australia’s Queensland Bauxite plans to start coal prospecting in Mozambique

3 July 2013

Australian company Queensland Bauxite plans to acquire stakes in two coal prospecting licenses in Mozambique, near the currently operational mines owned by Brazil’s Vale and Australia’s Rio Tinto, the company said in a statement Tuesday.

The company said it had reached an agreement with unlisted Australian company Regius Coal Mining to buy an initial stake of 35 percent in subsidiary Regius Coal SPV, which owned the two licenses, for US$750,000.

Eighteen months after closing the deal Queensland Bauxite will be able to buy a further 16 percent of Regius Coal SPV for an additional sum of US$1.2 million, to paid in one or more tranches.

This second deal will give Queensland Bauxite a controlling stake of 51 percent in Regius Coal which owns 80 percent of prospecting license 4070L and the right to buy 85 percent of license 4169L as well as stakes in additional prospecting licenses.

The two licenses cover an area of 206 square kilometres. (macauhub)