HomeEnergy MineralsBeacon Hill given Sena line quota

Beacon Hill given Sena line quota

Beacon Hill coal
mine “’ granted a
transport allocation
on the Sena rail line
from April
Maputo, Mozambique — 14 February 2013 – The London-based mining company Beacon Hill Resources has reached an agreement with Mozambique’s publicly owned ports and rail company, CFM, which will enable it to transport half a million tonnes of coal per year along the Sena rail line.

Beacon Hill is the owner of the Minas de Moatize open cast coal mine in the western province of Tete. Until now it has been transporting its coal to Beira by truck, and on Christmas Eve its second trial rail shipment of 18,576 tonnes of thermal coal left the port, reports allAfrica.com.

But as from April it will be able to move the coal along the 580km railway line. This will enable the company to begin exporting coking coal using two locomotives and 42 wagons.

According to Beacon Hill managing director Rowan Karstel this is a quantum step for Minas Moatize Limitada, and is the key to successfully exporting coking coal economically out of Tete province.

Beacon Hill recently announced that it had increased by almost a third the estimated reserves of coking coal at Minas de Moatize. The company is planning to increase production to 2.8Mtpa  by the end of this year, and will focus on mining the high value coking coal that is used in steel production.

Like all the coal companies in the Moatize Basin, the expansion at Beacon Hill is dependent upon a phenomenal increase in the capacity to transport the coal.

Following several delays, the Sena Line is nearing the completion of a US$60 million upgrade that will increase its capacity to 6.5Mtpa. But this will be nowhere near enough to cope with the phenomenal demand (particularly from the Brazilian mining giant Vale and the London-based Rio Tinto).

Independent experts believe that over the next decade coal exports from the Zambezi coal basin by several companies could reach 100Mtpa, making Mozambique one of the world’s largest coal exporters.

Source: allAfrica.com. For more information, click here.