Beacon Hill Resources Plc (‘Beacon Hill’ or ‘the Company’) is an AIM and ASX listed resources company, headquartered in Johannesburg, that is focussed on building and developing a portfolio of near term production projects in commodities relating to the steel production industry.
31/10/13Beacon Hill advances expansion plans to fend off low coal prices
03/09/13Beacon Hill Resources boost from Canaccord
29/05/13UPDATE: Beacon Hill Resources produces first coking coal at Minas Moatize
02/05/13UPDATE: Beacon Hill Resources approaching first production milestone
05/04/13Beacon Hill Resources commissions Minas Moatize wash plant as makes "excellent" progress
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Beacon Hill’s flagship project is the Minas Moatize Coking Coal Project, which is an operating coal mine in the Tete Province of Mozambique. The Company took management control of the mine in May 2010, and has developed the mine into an open cast operation. The Company has a defined development plan in place to increase production to 2.8 million tonnes per annum (‘Mtpa’) ROM Coal. The defined JORC-compliant Resource is 86.8 million tonnes.
In addition to the Minas Moatize Coking Coal Project, Beacon Hill holds (1) mineral tenure over two large, high grade magnesite deposits at Arthur River and Lyons River in north-western Tasmania, Australia and (2) majority ownership in the Changara Coal Project, which is a coal exploration project in the Tete Province of Mozambique.
Beacon Hill Resources Plc's shares are traded on the AIM Market ('AIM') of the London Stock Exchange under the code "BHR" and on the Australian Securities Exchange ('ASX') under the code "BHU".
Beacon Hill Resources Plc is incorporated in England and Wales with registered number 5696680.
Beacon Hill Resources Plc's main countries of operation are the UK, Mozambique, South Africa and Australia.
Beacon Hill Resources Plc (‘Beacon Hill’ or ‘the Company’) owns and operates the Minas Moatize Coal Mine, which is one of three operating coal mines producing and selling coal in Mozambique’s Moatize Coal Basin, one of the largest developing coking coal regions in the world
In addition to Minas Moatize, Beacon Hill holds a majority interest in the Changara Coal Project, an exploration project that is located within close proximity to its flagship Minas Moatize Coal Project
Minas Moatize MIne
Beacon Hill, through its subsidiary Minas Moatize Limitada ('MML'), owns and operates the Minas Moatize Coal Mine in the Tete Province of Mozambique.
Beacon Hill completed the acquisition of MML in December 2010 after taking management control of the project in May 2010. Since taking management control, Beacon Hill has focussed on the expansion and development of the Minas Moatize Coal Mine.
Beacon Hill commenced open pit mining of thermal coal from an initial open pit area in 2011. The coal produced is being processed at Minas Moatize’s Wash Plant.
A JORC compliant Coal Reserve has been published for Minas Moatize. A total Mineable Reserve of 42.65Mt was reported with the potential upside of a further 7.9Mt. The Mineable Reserve represents the in situ portion of the Geological Resource that is economically mineable.
The total Mineable Reserve includes a Marketable Reserve of 23.45Mt, representing the saleable portion after mining and processing of the resource, of which at least 8.72Mt is coking coal.
The Board has prioritised the use of rail in 2013 for bulk transportation of coal from Tete to the Port of Beira. Earlier this year, Beacon Hill received an allocation of 500,000 tonnes on the Sena Rail Line to transport coal to the port for export shipment.
The Group's has had two trail exports shipment of thermal coal. The Group's first export shipment of coking coal is expected to take place mid Q2 2013.
Changara Coal Project
In December 2011, Beacon Hill acquired majority ownership in a joint venture to explore and develop the Changara Coal Project in the Tete Province of Mozambique.
The Changara Coal Project covers a licence area of 184km2, which is 70 times the size of Minas Moatize. It is located in the heart of the highly prospective coking coal basin of the Songo Area of the Tete Province, an area with proven coal reserves located within close proximity to Jindal Steel & Power Chingodzi Coal Project, which is estimated to contain a resource in excess of 700Mt of coking and thermal coal.
The JV is a further step in Beacon Hill's wider expansion strategy in the globally significant coking coal region of Tete and will provide the Group with an opportunity to invest in a longer term development project that has the potential to considerably enhance its resource base.
The first phase drilling programme of a planned 17 holes has commenced at Changara. An initial 5 exploratory drill holes have been completed using an air flush percussion method to a shallow depth of up to 200 m across the 184 km2 licence area. All drill holes have identified sandstone, believed to be the Matinde formation, which is known to typically sit above the coal zones within the Moatize Formation of the Lower Karoo, the geological formation seen within the coal bearing region of Tete Province, Mozambique. These initial shallow holes, whilst very widely spaced across a large area give early guidance as to the geological structure present in the area and provide the basis for further drilling below the sandstone.
Beacon Hill, through its subsidiary Tasmania Magnesite NL, holds mineral tenure over two large, high-grade magnesite deposits at Arthur River and Lyons River in north-western Tasmania, Australia.
The tenure is in the form of a Mining Lease (Arthur River Site) and two Retention Licences (Arthur River and Lyons River Site).
Beacon Hill acquired Tasmania Magnesite in October 2009.
Preliminary Scoping Study
Beacon Hill completed a Preliminary Scoping Study on the Arthur River Deposit in 2012; the deposit over which Tasmania Magnesite holds a mining lease.
The Study demonstrates the potential financial viability of the Arthur River Magnesite Project. Financial modelling, using a discount rate of 10% (real), demonstrated a pre-tax NPV of A$42 million based on a mine life of 17 years and a 292,000dtpa ROM operation producing on average 100,000tpa of calcined magnesia.
Magnesia (MgO) is produced from magnesite by calcination (roasting to high temperatures in a kiln) to remove carbon dioxide.
There are three main types of magnesia:
Deadburned Magnesia (DBM) and Electrofused Magnesia (EFM) are used mainly in the refractory industry to line furnaces and are therefore an essential raw material for the production of steel, cement and glass.
Magnesia has one of the highest melting points of all minerals (2,800°C), is nonreactive at high temperatures and is an alkali.
CCM is used as a chemical in a number of markets including: agriculture (fertiliser and feedstock), nickel, copper and cobalt, pulp and paper, waster and water treatment.
Tasmania is an Australian island and state located 240km south of the eastern side of the continent and separated by Bass Strait. Its area is 68,401km2, of which the main island covers 62,409 km2. Its location gives good export routes to Asian growth markets including China and India.
Activity in the Natural Resource Sector
Tasmania has a very active minerals exploration and mining industry with a wide variety of high-grade mineral deposits including iron ore, gold, silver, copper, lead, zinc, tin tungsten, silica, dolomite, magnesite, platinum, chromite and coal. The mining and processing sector is Tasmania's largest export industry, accounting for 53% of mercantile exports in 2007/08.
Due to the long history of mining and mineral exploration in Tasmania, there is a highly skilled local workforce, particularly in the north-west of the island.
Infrastructure and Services
Tasmania is well supplied with transport infrastructure, with an extensive road and bridge network, 867km of railway network and four major deepwater ports. Power is both low in cost and reliable, with Tasmania being a net exporter of electricity. Most of Tasmania's electricity is generated using hydro-electric generators however the state also has Australia's largest wind farm, Woolnorth. Forecasts indicate that generation capacity will remain well above demand until at least 2017.
Rowan Karstel: Chief Executive Officer
Rowan Karstel, aged 50, was appointed as CEO of Beacon Hill Resources Plc in November 2012. Rowan joined Beacon Hill from Keaton Energy Limited, a Johannesburg listed thermal coal producer. Prior to Keaton Energy, Rowan was the Chief Project Development Officer at Optimum Coal Holdings where he was responsible for the development and execution of Optimum Coal’s project pipeline prior to the Company’s acquisition by Glencore International Plc.
Rowan, a professional engineer, holds a Bachelor in Mining and Civil Engineering, a MSc in Mineral Economics and a MBA. Rowan began his career in deep gold mining before moving into coal mining where he worked for 20 years both in South Africa and internationally where he worked in various capacities for BHP Billiton, and Xstrata Coal. Prior to joining Optimum Coal, Rowan was the Director of Business Development for Mmakau Coal.
Justin Farr-Jones: Chairman
Justin Farr-Jones, joined the Board of Beacon Hill as a Non-Executive Director in July 2012 and became Chairman of the Board in November 2012. Justin is a Director of Renaissance Capital and is currently responsible for Renaissance's existing and new investments in Africa, including the firm’s investment in Beacon Hill Resources Plc. He has been active in private equity and portfolio management for the past 14 years, working with numerous portfolio companies at board level. Justin joined Renaissance Asset Managers in 2008 and led Renaissance Africa Fund’s successful investments in among others the re-capitalisation of Blue Financial Services (South Africa), Beacon Hill Resources acquisition of Minas Moatize (Mozambique), and an investment in TrustCo (Nambia) working closely with management in formulation of its growth strategy. Prior to this Justin was a founding Partner at Clearbrook Capital Partners and held positions with WestLB Principal Finance, Barclays Capital and JP Morgan Chase. Justin holds a BA (Hons) Financial Services from Nottingham Business School.
Murray d'Almeida: Non-Executive Director
Murray d'Almeida, joined the Board of Beacon Hill as a Non-Executive Director in October 2009 following the Company’s acquisition of Tasmania Magnesite NL. Murray has over 30 years of national and international business experience having been involved in the restaurant, wholesaling, farming, mineral exploration and liquor industries. Murray is currently a non-executive director of Hyperion Asset Management Limited, a leading Australian equities manager, Chairman of Bartercard Australia Pty Ltd, the Federal Government's Area Consultative Committee for the Gold Coast and Regions, The Institute of Business Leaders Ltd, Gold Coast Rugby Ltd, a member of the Gold Coast's Regional Economic Development Advisory Board and a member of a Griffith University Business School Advisory Board. He has held previous positions as Chairman of Allied Brands Ltd and ECT Ltd (ASX listed entities), Director of Bartercard PLC (AIM Listed), Golden Pacific Resources Ltd, Capricorn Resources NL, Queensland Rugby Union, Australian Small Business Association and Franchisors Association of Australia and New Zealand.
Cristian Ramirez: Non-Executive Director
Mr. Ramirez has 10 years of investment and equity research experience, including Head of Equity Research at Larrain Vial, the largest Chilean Brokerage House covering mining and electric utilities. He has been active in developing a portfolio of global mining equities in the Americas, Africa, CIS and Asia, that comprises companies in their early stages of development up to large diversified names. Mr. Ramirez commenced his career with Chilquinta Energia, a Sempra Energy subsidiary in Chile, which adds to his 14 years of experience in the Electric Utility sector in Chile and Latin America. He received his Bachelor in Civil Industrial Engineering from the Catholic University of Valparaiso in Chile (Cum Laude), and holds an MBA from Warwick Business School (UK) and a Masters in Finance from Los Andes University (Chile).
Nicholas von Bruemmer: Non-Executive Director
Mr. von Bruemmer has gained a breadth of commercial experience through his current position as Deputy Chairman at Hansa AG (‘Hansa’) and CEO of Pelham Investments AG, a large Swiss Family Office with global investments in listed and unlisted equity across various sectors and industries. Mr. von Bruemmer started working for Hansa AG in early 2008 and has been involved in many private equity transactions during this period. Prior to Hansa, Mr. von Bruemmer worked for an Italian infrastructure holding company in Milan, responsible for its international expansion programme. Mr. von Bruemmer studied in Zurich and holds a BA in Business Administration.
MINAS MOATIZE EXECUTIVE MANAGEMENT TEAM
John Daley - Chief Operating Officer
John Daly was appointed Chief Operating Officer effective 1 March 2013. John was previously Director of Mining and Technical Services at AMCI Africa for their Mozambican and South African operations. Prior to this John worked at BHP Billiton as General Manager at Savmore Colliery and Emaswati Coal. He also worked as Operations Manager at Middleburg mine and Zululand Anthracite Colliery. Middelburg Mine is one of the largest open cut mines in the Witbank Coal fields, South Africa.
Stefanie Cronje - Chief Financial Officer
Stefanie is responsible for the entire financial function; procurement and human resources at Minas Moatize and is based at head office in Gauteng. Stefanie was appointed on 1 February 2013. Stefanie has a wealth of knowledge with regards to growth companies and has successful track record of implementing turnaround strategies. She has a B.Com degree from the University of Pretoria and a MBA from the University of Stellenbosch. From 1991 to 1998 Stefanie was Group Financial Director at Incledon and from 1999 to 2009 was the CFO at Geratech Zirconium Beneficiations. For the last three years she has held the position of Financial Director at Brokrew Industrial (Pty) Ltd. Stefanie has already had a positive impact on the recent audit and is in the process of implementing new international standard financial systems and processes.
Mac van der Merwe - Operations Manager Rail
Mac van der Merwe has been appointed Operations Manager Rail effective from 1 March 2013. Mac brings a wealth of rail and port experience to complement the emerging Minas Moatize rail operation. Mac is a professional Civil Engineer with coal trading qualifications from Oxford University and an honours degree in Civil Engineering from University of Pretoria. Over the past thirty years, Mac has held various positions in rail and port most recently as a consultant in Rail and Port at BHP Billiton. Prior to this Mac was Project Manager Rail and Port at CIC Energy for the 1,400km Trans Kalahari Railway project linking Botswana with the Port of Walvis Bay where he completed conceptual and pre-feasibility studies. Mac has previously worked for COALlink/Orex as a Business/Commercial Manager and as Project Leader for the Eskom Majuba Power Station rail projects. He has also held various senior positions at Transnet freight rail.
Lynette Kruger - Marketing & Logistics Manager
Lynette is responsible for the entire marketing and logistics function which includes the Beira Port. She is based at head office in Gauteng. Lynette was appointed on 1 March 2013. Lynette has invaluable experience in all aspects of coal marketing and the logistics value chain. She completed her B. Com. Marketing degree from the University of Pretoria.Lynette has been in the mining industry since 1999 where she started with Metorex Coal Division, responsible for all domestic marketing and logistics for four collieries and a siding. After the Shanduka Coal buy out of the Metorex in 2006, she worked closely with Glencore International.
Ric Jose - Mozambique Country Manager
Ric is responsible for Minas Moatize's Corporate, Social and Political functions in Mozambique. In addition, Ric is playing a key role representing MML at the Mozambique Government. Since the signing of the Mining Contract, the Mozambique Government is a stakeholder in MML. Ric is an Australian Chartered Engineer with over 25 years of experience in the mining sector, having held senior operational and corporate management roles involving both open-pit and underground operations. A Mozambican national and a respected mining engineer well known within the Mozambican mining industry and government circles, Ric gained experience of the Moatize coal fields early in his career. Ric has also worked in Portugal, Papua New Guinea and Australia, latterly as Group Chief Mining Engineer at ASX listed Aditya Birla Minerals Limited.
Fully Paid Ordinary Shares of 0.25p each on Issue: 1,578,593,484
The percentage of securities not in public hands and the identity of the holdings of significant shareholders:
Shares not in public hands: 628,165,329 - 39.79%
Registered Office (UK)
44 Southampton Buildings
London, WC2A 1AP
Regional Office (Johannesburg)
Ground Floor, Lakeview Building
1277 Mike Crawford Street
Mozambique Office (Maputo)
Rua da Frente de Libertacao
de Mozambique, No.324
Bairro da Sommerschield
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