Beacon Hill Resources, a company based in London, will have to sell Minas de Moatize, its coal asset in Mozambique due to its inability to secure financing, and its consequent failure to service its debts, the company said in a statement.
In the statement, Beacon Hill regrets that it failed to find any viable source of funding and that the crisis facing the company has been “exacerbated by the adverse conditions of the world coal market, which has led to a drop in price.”
Despite the problems, the chairman of Beacon Hill, Justin Farr-Jones, said “the Moatize mine continues to be an excellent project, with significant milestones achieved since the company took control of the mine in May 2010 … therefore the buyer must be found to allow the management of this asset, to resume long-term mining operations. ”
Adding that there is no guarantee that the Minas de Moatize, Limitada will be sold, Vitol Coal SA, Beacon Hill’s main creditor said in the same document that everything would be done to find a buyer for the British company’s only asset. (macauhub/MZ)