Minas Moatize - Beacon Hill

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.

Production

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.

Mineable Reserve

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.

	Resource		Total Mineable Reserves¹			Marketable Reserves
	Measured	Indicated	Proved	Probable	Total	Yield²	Total³
Location	(Mt)	(Mt)	(Mt)	(Mt)	(Mt)	(%)	(Mt)
DFS Pit			25.45	17.2			23.45
Total	35.92	30.50	25.45	17.2	42.65		23.45

Coal Product Type
Coking Coal						20.45%	8.72
Thermal (Export)						25.53%	10.89
Thermal (Domestic)						9.01%	3.84
						54.99%	23.45
1. All reserves stated are on an air dried basis
2. Yield calculation for marketable reserves is based on a fines content of 7%
3. Reported reserves does not include 'tonnes' currently unclassified and subject to in-fill drilling programme

Marketing

Off-Take Agreement with Global Coke

In November 2011, Beacon Hill entered into a revised off-take agreement with its partner Global Coke. The revised off-take agreement was for up to 600,000 tonnes of coking coal per annum from Minas Moatize for the life of the mine.

Marketing Partnership with Vitol

In March 2012, Beacon Hill entered into a strategic marketing partnership with the Vitol Group, one of the world's largest energy trading groups. As part of the partnership the parties entered into a Coal Marketing Agreement whereby Vitol will act as agent to market export coal produced by the Minas Moatize Mine.