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Saturday, January 7, 2012

Beacon Hill Resources sets up coal mining partnership in Mozambique

Saturday, 07 Jan 2012

It is reported that British mining company Beacon Hill Resources had set up a partnership with Midwest Africa Limited to explore and develop a coal deposit covering an area of 184 square kilometres in Mozambique Tete province.

In a statement, Beacon Hill said that MAL has a license for that deposit which is located in the Changara district to the south of the Zambezi River and the working coal mines located in the Moatize district.

Beacon Hill Resources is the owner of the Moatize mines and recently started exporting coal. The statement added that the partnership was yet another step in the company’s expansion strategy for the Tete coal region.

The chairman of Beacon Hill, Justin Lewis, noted that the company had started exporting thermal coal and announced that production or coking coal would begin soon and the partnership is very important for our strategy given that the new license covers an area that is 70 times the size of the Moatize Mines.

The partnership is called Nongo Limitada is 99% owned by Beacon Hill Resources and 1% by MAL. In the deal MAL received 60,000 shares in Beacon Hill.

MAL will transfer the license to Nongo Limitada after which it will control another 19% of this company and will have a 20% stake in total.


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