Beacon Hill upbeat over Minas Moatize

Coal miner Beacon Hill Resources (BHR) has updated investors on its Minas Moatize Project in Mozambique.

It confirmed that the project held total mineable reserves of 42.65 million tonnes (Mt), with potential upside of a further 7.9 Mt.

The maiden joint ore reserves committee (JORC) statement also highlighted a marketable reserve of 23.45 Mt of coal, of which over one third was coking coal. Chairman Justin Lewis called this "a proven end-to-end export solution as highlighted by the commencement of shipping in December 2011".

Beacon Hill's first export shipment of coal from Minas Moatize left the Port of Beira in mid-December 2011.

Additionally, the statement emphasised that the Minas Moatize had a mine life of up to 14 years.

"The commercial value of the Minas Moatize Project is increasingly being confirmed," stressed Lewis.

"This result increases the confidence in the group's coal asset and continues to de-risk the project," stated broker Collins Stewart. "The reserve conversion from the mineable resource to reserves is 64%, which is very high relative to the sector," it added.

The definitive feasibility study, due for release later this quarter, continues to be based on a four million tonne per annum run of mine operation producing in excess of two million tonnes per annum of saleable hard coking and thermal coal for the life of mine.

For an understanding of what to look for when considering exposure to the sector, read: Analysing... Miners.