19 Dec 2011 07:00
Beacon Hill Resources Plc / Ticker: BHR / Index: AIM / Sector: Mining
19 December 2011
Beacon Hill Resources Plc ('Beacon Hill' or 'the Group')
First Export Shipment of Coal Seaborne from Port of Beira, Mozambique
Beacon Hill, the AIM listed coking coal producer, is pleased to announce that its first export shipment of coal from its Minas Moatize Coal Mine in Mozambique ('Minas Moatize') departed from the Port of Beira on Saturday 17 December 2011. This shipment marks a key milestone for the Group and demonstrates Beacon Hill's end to end logistics solution. Significant progress continues to be made regarding the Sena rail line, which has strengthened the Group's confidence is attaining an allocation in 2012. These progressions pave the way for Beacon Hill to ramp up production to 2Mtpa of coking and thermal coal over the next two years.
First shipment
The Group's first shipment of 10,650 tonnes of thermal coal, produced from Minas Moatize, was trucked to the Port of Beira ahead of being loaded onto the MV Aztec Maiden and shipped. This first shipment has demonstrated Beacon Hill's viable operational end to end logistics solution which allows coal to be transported from mine to port and then shipped to customers via the seaborne market.
Beacon Hill continues to make solid progress at Minas Moatize with current production of thermal coal and the production of coking coal expected to commence in Q1 2012.
Logistics Update
The Group's existing trucking solution will allow the transport of up to 0.5Mtpa to the Port of Beira for future shipments, which is more than sufficient for its planned production over the next 12 months. Longer term, the Group's intention is to utilise the Sena rail line to transport its coal from Moatize to Beira.
The operation of the Sena rail line has recently been taken over by CFM, an agency of the Government of Mozambique, with whom Beacon Hill, together with the other two coal producers continues to have active discussions.
Minas Moatize is a member of Taskforce One, together with VALE, Rio Tinto and CFM, which is finalising terms of reference to complete the refurbishment of the Sena rail line to an initial capacity of 6.5Mtpa in mid-2012 and then to a fully operational capacity of 12Mtpa later in the year. These discussions are progressing well and the Group remains confident of attaining an allocation to the line in 2012, which will allow it to further ramp up coal production.
Justin Lewis, Chairman of Beacon Hill, commented, "This first shipment is a key milestone not only for the Group, but also for the development of this strategically important coking coal region. It demonstrably transforms Beacon Hill into an exporter of coal from Tete and is a huge achievement for the team just 12 months following the acquisition of Minas Moatize.
"The proof of concept of this initial economically viable shipment allows us to evaluate key elements in the supply chain, a process which will be highly beneficial to the Group when we commence production of coking coal in Q1 2012. As one of only two operating coal companies in this globally significant area, maintaining and leveraging our first mover advantage as one of the first seaborne exporters of Mozambican coal is something we have now clearly demonstrated as we actively look to ramp up production over the coming years.
"Through Taskforce One, Beacon Hill continues to be an active participant in the refurbishment of the Sena rail line which continues to make good progress. Our export capacity will be significantly enhanced by the receipt of an allocation to the Sena rail line, in conjunction with its refurbishment next year."
**ENDS**
For further information on the Company, visit www.bhrplc.com or contact:
Justin Lewis | Chairman, Beacon Hill Resources Plc | +61 (0) 3 9627 9910 +61 439 162 369 |
Timothy Jones | Finance Director, Beacon Hill Resources Plc | +44 (0) 1372 464549 +44 (0) 7966 442985 |
John Prior | Collins Stewart Europe Limited | +44 (0) 20 7523 8350 |
Adam Miller | Collins Stewart Europe Limited | +44 (0) 20 7523 8350 |
Jeremy Wrathall | Renaissance Capital Ltd | +44 (0) 20 7367 8273 |
Susie Geliher | St Brides Media & Finance Ltd | +44 (0) 20 7236 1177 |
Notes
Beacon Hill Resources Plc is an AIM-listed resource company that is focused on building a portfolio of near-term production projects in commodities relating to the steel production industry. Beacon Hill has two key assets: the Minas Moatize Coal Mine in the globally significant coking coal region of the Moatize Coal Basin in Mozambique; and the Arthur River Magnesite Project in Tasmania, Australia.