Beacon Hill Resources has updated its off take agreement with Global Coke ahead of first production of coking coal from the Minas Moatize mine in Mozambique. The revised off-take agreement is for up to 600,000 tonnes of coking coal per annum for the life of the mine.

And following the confirmation of Minas Moatize coking coal as a hard coking coal, the parties have agreed to the pricing benchmark being a free-on-board Australia Hard Coking Coal index.

Both parties will enter into a pre-agreed quarterly delivery schedule based upon predicted production and logistics capacity.

First production of coking coal is on course to start in the first quarter of next year with transportation to the Port of Beira utilising the group's proven trucking operation.

Mr Justin Lewis chairman of Beacon Hill said that "We are very pleased to have concluded this revised off-take agreement with our long term partner Global Coke, prior to the commencement of production of coking coal from the Minas Moatize mine early next year. The agreement reflects the development of the mine over the last 12 months and gives the parties greater flexibility taking into account predicted short term coking coal production and logistics capacity, whilst the agreed pricing index follows the reconfirmation of Minas Moatize coking coal as a hard coking coal.

"Beacon Hill considers Global Coke to be a long term strategic partner and is committed to working together throughout the development of the Minas Moatize project."

(Sourced from StockMarketWire.com)