Tegeta will honour the original coal supply contract Optimum coal mine had in place

The delivery of 90 coal wagons to Beacon Hill’s Minas Moatize mine has ensured the company meets an important condition for its debt-funding. The coal rail wagons were successfully offloaded at the Port of Beira, Mozambique, on 7 March 2014.

“The receipt of our rolling stock in country is another important milestone as we focus on proving both our export capability in line with our strategy to deliver Tier 1 coking coal production at our Minas Moatize Coking Coal Mine, as well as demonstrating our firm commitment to investing in Mozambique as a whole.  In addition, an important condition precedent for our debt funding plans for 2014 is now complete,” said Beacon Hill CEO Rowan Karstel.

The rail wagons remain subject to further work by Transnet post arrival in Mozambique and hot commissioning inspection by CFM before they will be signed off for operations.  Once singed off, lease payments for the wagons will commence. The rail wagons will be released once the final customs clearance documentation has been obtained from the Government of Mozambique.

Other developments regarding Beacon Hill’s end-to-end logistics solution and rolling stock operations include the completion of five grindrod rail locomotives, expected to arrive by rail in Mozambique in early April 2014, and discussions with sub-leasing counterparties well advanced and expected to be completed during Q2 2014 in line with availability of full train sets.

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