Friday, March 6, 2009

Coal India Wins Mozambique Coal Concessions

State-owned coal miner, Coal India Ltd (CIL), is set to mark its footprint overseas having won the concession of two coal blocks in Mozambique, senior officials in the Indian High Commission told The Hindu.

Studies conducted by the Central Mine Planning and Design Institute (CMPDI), the consultancy and design arm of CIL, has proven substantial reserves of coking and non-coking coal in the two blocks, which are spread out over a 200 sq. km area. CIL will help in institution building and will invest in CSR (corporate social responsibility) activities as part of the deal.

Coal Ministry sources told The Hindu that “The two blocks, called A1 and A2 which are to be awarded to CIL, contain reserves of over one billion tonnes.” The Mozambique government had already published an evaluation saying that the two blocks were being awarded to Coal India.

Indications are that CIL will have to tie-up with a local company for this venture. It may also rope in an Indian partner for these opencast mines.

While 15 per cent of the output of these mines will be reserved for the host country, the balance can be exported back to India. “Eighty-five per cent is the floor level and once developed, these mines are expected to play a key role in meeting the country’s coal shortage, especially that of coking coal,” sources said. CIL has been trying to acquire overseas mining interests for quite some time now, through its own arm ‘Coal Videsh’ as well as through the joint venture International Coal Ventures Ltd (ICVL).

As part of the deal, CIL will donate 500 artificial limbs to Mozambique government to help the victims of a blast that had occurred in an open-air ammunition depot in in 2007.

Source: The Hindu

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