London, England — 05 December 2012 – Plans for Beacon Hill Resources to produce 4Mtpa of coal in Mozambique have been set aside, and the current business plan is focusing on increasing production to 1.8Mtpa by the beginning of 2013.
In a statement entitled “Strategic Update,” the new board headed up by Rowan Karstel estimated that the company needed just US$16 million to increase production to 1.8Mtpa by January 2013 and 2.8Mtpa by the end of next year, as compared to a cost of US$150 million to achieve production of 4Mtpa, reports Macauhub News Agency.
Noting that the initial plan remained a possibility if it a partnership with a nearby concession could be set up as a way of extending the life of the Moatize mines, the statement added that initially the mine would focus on coking coal, which is commercially more valuable.
Rowan Karstel’s board of directors also said it was sure that by the end of January 2013 it would be granted an allocation on the Sena railroad to carry coal to the port of Beira, and that it had reached a provisional agreement to lease rolling stock.
At the beginning of October, the British company announced it was negotiating with Mozambican state rail and port company Portos e Caminhos de Ferro de Moçambique (CFM) to be given a quota for transporting coal along the Sena railroad.
Beacon Hill Resources plans to transport coal from the Moatize basin in Tete province to the port of Beira, in Sofala province, both in central Mozambique. The company is currently carrying the Moatize coal to Beira by road and has a fleet of trucks for this purpose.
Source: Macauhub News Agency. For more information, click here.