Beacon Hill Resources has been offered a debt facility worth US$ 20 million to fund the expansion of the washplant at its Minas Moatize coal mine in Mozambique.
In an update announcing the company’s audited 2013 results, Beacon Hill explained that significant progress has been made towards establishing the Minas Moatize mine as a Tier One cash cost coking coal project.
- Further progress has been made towards securing rail export logistics infrastructure, including long-term rail allocation on the Sena Railway line and conclusion of a US$ 21 million rolling stock transaction for five locomotives and 90 wagons.
- Washplant production capacity has increased by 300% to 1.8 million tpa, following the successful commissioning of the Phase 2A washplant and with the production of the first export grade coking and thermal coal.
- A 31% increase in JORC Resource and economic viability of the mine for 15 years life of mine was confirmed, at reduced coal prices.
- A 25-year mining contract was signed with the government of Mozambique, which included participation rights for EMEM, the government sovereign wealth fund.
Company CEO, Rowan Karstel, commented: "The Beacon Hill team remain centred on developing a low capex, low opex coking coal mine at Minas Moatize, capable of generating attractive returns to investors during all phases of the resources cycle.
“We are confident that Minas Moatize has all the right attributes, including significant tonnage with a limited strip ratio and high quality coking coal properties, to achieve this objective so our focus is set on developing the optimum processing parameters and logistics chain to deliver a Tier One cash cost asset.
"In line with this strategy, I am delighted to report that we have received a non-binding offer for a US$ 20 million debt facility for the expansion of the Minas Moatize washplant to 2.8 million tpa run of mine, which, if secured, will enable the Company to accelerate development at the mine. I look forward to providing further updates regarding this funding in due course."
In other news, Beacon Hill announced the appointment of Adrian Bock and Chief Financial Officer with immediate effect. Bock joins the company from Transafrica Capital, an Africa focused private equity company.
Edited from various sources by Katie Woodward
Read the article online at: https://www.worldcoal.com/mining/28032014/beacon_hill_funds_for_washplant_expansion_666/