LONDON, March 19 (Reuters) – Energy trader Vitol is to
market 2 million tonnes a year of thermal and coking coal
produced by Beacon Hill Resources from its Minas
Moatize mine in Mozambique, sources close the deal said.
Mozambique is a new but key coal producer with vast reserves
that have attracted substantial investment from companies
including Rio Tinto, Vale and India’s Tata
group.
The Beacon Hill agreement is for a relatively small tonnage
of 50:50 thermal and coking coal but it gives Vitol a presence
in the Moatize basin, the sources said.
Vitol earlier this year formed a joint venture with South
Africa’s Grindrod to run Maputo port in Mozambique
, which mostly exports South African coal.
Beacon Hill will continue to sell export coal to Global
Coke, which will be offered up to 600,000 tonnes a year of
coking coal for the life of mine.
Vitol, which trades more than 25 million tonnes a year of
coal, will also advance Beacon Hill a debt facility of up to $20
million in two tranches, to be used for capital spending,
general and working capital purposes.
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