Beacon Hill Resources' subsidiary enters Mozambique rail agreement

Beacon Hill Resources' subsidiary Minas Moatize Limitada (MML) has entered into an interim rail access agreement with Portos e Caminhos de Ferro de Moambique (CFM), in which MML has received an annual capacity allocation of 0.5m tonnes on the Sena Rail Line.

The Sena Line runs from close to MML's Coking Coal Mine in Tete to the Port of Beira and is currently approaching completion of a $60m upgrade programme that will result in its capacity rising to 6.5m tonnes per annum (tpa).

Beacon Hill Resources reported that MML intended to use the rail capacity to commence exports of coking coal in 2013.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Under the terms of the agreement, which commences in April, MML will initially operate two train sets each consisting of two locomotives with 42 wagons.

Rowan Karstel, Group Managing Director Beacon Hill and MML said: "This is a quantum step for MML and is the key to successfully export coking coal economically out of Tete Province."

Beacon Hill's share price was up 22.99% to 5.25p at 08:31 on Monday.

MF