Basil Read awarded Mozambique mining contract

Posted On Wednesday, 13 April 2011 02:00 Published by Commercial Property News
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Basil Read says that it has entered into a heads of agreement with Beacon Hill Resources for development of the Minas Moatize Coal Mine in Mozambique.

Marius Lodewucus Heyns Basil ReadConstruction group Basil Read Holdings said on Tuesday that it had entered into a heads of agreement with Beacon Hill Resources for development of the Minas Moatize Coal Mine in Mozambique.

In terms of stage one of the agreement, TWP, a subsidiary of Basil Read, was appointed to complete the definitive feasibility study, including the design of the coal handling and preparation plant and opencast mine.

Subject to the successful completion of the definitive feasibility study, Basil Read was set to be appointed as the principal contractor to build, own and operate the coal handling and preparation plant at the mine, as well as the principal mining contractor for four million tons per annum (mtpa).

"This agreement represents a major engineering, procurement and construct contract signed by Basil Read following the merger with TWP and represents a significant step forward in unlocking the synergies between the merged entities.

"The contract further supports Basil Read's strategy of international expansion and its stated intention to undertake larger, more technically challenging projects," the group said.

Last month Basil Read announced that its MAJWE mining joint venture had secured a five-year multibillion-rand mining service contract with Debswana Diamond Company in Botswana.

Basil Read said its order book following the award of this contract was valued at just under R10 billion.

Debswana is the world's largest diamond producer by value, with mining operations at Jwaneng, Orapa, Letlhakane and Damtshaa in Botswana.

All of these mines use open-pit mining methods to extract their diamonds.

In March, the group reported a 16% rise in revenue to R5.4 billion for the year ended December 2010.

Diluted headline earnings per share dropped to 209.25c from 332.43 cents a year ago.

Operating profit was down 5% to R408.7 million from R429.2 million in the previous corresponding period.

The group declared a final dividend of 30 cents per share, which, together with the interim dividend, amounted to 72 cents.

"A strong order book and equally strong relationships with clients, suppliers and subcontractors again enabled the group to manage these conditions effectively," the company said, adding that its order book stood at R8.5 billion.

Last modified on Tuesday, 25 June 2013 01:00

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