Situated in the eastern African country’s coal-rich Tete province, the mine completed a definitive feasibility study last month which reported a post-tax net present value of $US428 million.

The operation is targeted to build to a rate of more than 2 million tonnes per annum of saleable coking and thermal coal and currently records 23.45Mt of marketable reserves, at least 8.72Mt of which are coking coal.

The company was upbeat about the development of shipping logistics, projecting that a transportation system would be formally allocated for the mine this year.

Beacon Hill chairman Justin Lewis spoke positively about the site’s progress and the company’s nearby Changara coal project which covers a tenement 70 times the size of Minas Moatize.

“These key achievements have further de-risked the project and leave the group well-placed to ramp up production throughout 2012,” he said.

“With the continued development of Minas Moatize in tandem with our exploration objectives at Changara, I am confident that Beacon Hill is strategically positioned to build value and become a substantial coking coal producer in Mozambique.”

Drilling at Changara is expected to commence in mid-April 2012.